Hertz warns of hit to second-quarter core profit from sluggish used-car market

HERTZ GLOBAL HOLDINGS, INC.

HERTZ GLOBAL HOLDINGS, INC.

HTZ

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- 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.