Hertz warns of hit to second-quarter core profit from sluggish used-car market
HERTZ GLOBAL HOLDINGS, INC. HTZ | 0.00 |
June 24 (Reuters) - Car rental firm Hertz Global Holdings HTZ.O said on Wednesday that it expects second-quarter adjusted core profit to be near the lower end of its forecast range amid unexpected slowdown in the used-car market, sending shares down 24% before the bell.
Even as higher U.S. tariffs drive up prices of new vehicles and push buyers toward used cars, pre-owned car companies are struggling to preserve margins as macroeconomic pressures squeeze household budgets.
Here are some more details:
Hertz said unexpected softness in the used-car market led it to record losses on vehicle sales in May, compared with gains in April.
The company expects its adjusted earnings before interest, taxes, depreciation, and amortization for the quarter ending June 30 to be in the $50 million to $80 million range, the midpoint of which is below Wall Street estimates.
Analysts, on average, expected second-quarter EBITDA to be $79.11 million, according to data compiled by LSEG.
It expects second-quarter net depreciation per unit per month to be about $300.
