Hertz Global Reports Q3 Loss

(Reuters) – Hertz Global reported a wider-than-expected third-quarter loss and missed revenue estimates on Tuesday, impacted by depreciation charges from its fleet vehicles, resulting in a more than 8% drop in shares during premarket trading.

Key Financials

• Hertz recorded a $1 billion asset impairment charge this quarter due to declining fleet residual values, which refers to a vehicle's disposal price at the end of its operating period, compared to last year.
• Earlier this year, the company began selling around 20,000 electric vehicles, including Teslas, citing higher repair costs for these vehicles.
• Depreciation per unit surged 89% to $537 million in the quarter ending September 30 compared to the previous year.
• The company reported an adjusted loss of 68 cents per share, worse than analysts' estimate of 50 cents.
• Quarterly sales fell 5% to $2.58 billion, missing analyst estimates of $2.7 billion.