Hertz Global Holdings, Inc. (HTZ) Lowers Guidance on the Back of Vehicle Recalls

Hertz Global Holdings, Inc. (NYSE:HTZ) said in a SEC filing on Tuesday that it expects its full year earnings to come well below the lower end of the guidance it gave for 2014. The company is already reviewing its financial reporting for 2011-2013 and this recent news is not expected to offer any consolation to Hertz Global Holdings, Inc. (NYSE:HTZ)’s investors. Phil LeBeau reported on this latest development from Hertz Global Holdings, Inc. (NYSE:HTZ) on CNBC, recently.

“They have got internal issues that are certainly part of this as well, but there is no doubt that the recalls, which are at a record level for the auto industry is hurting Hertz Global Holdings, Inc. (NYSE:HTZ) and other rental companies. In fact, I have seen this myself when I have gone on trips, increasingly, when I am at Hertz Global Holdings, Inc. (NYSE:HTZ)’s counter, they are like, hold on a second we have to work a little harder to get a vehicle for you,” LeBeau said.

Hertz Global Holdings, Inc. (NYSE:HTZ)

LeBeau enumerated all the three earnings blue that Hertz Global Holdings, Inc. (NYSE:HTZ) is facing right now. The first and major one being the lowering of guidance, which the company mentioned in its filing yesterday is going to be well below its previous estimates of $1.70-$2.00 EPS. The second one being the review of 2011-2013 Financials that the company is conducting,  Hertz Global Holdings, Inc. (NYSE:HTZ) has said that they have found above $46.3 million in accounting errors for that period. Last, but not the least Hertz Global Holdings, Inc. (NYSE:HTZ)’s lead independent director is leaving the company’s Board.

“[...] Hertz Global Holdings, Inc. (NYSE:HTZ) is blaming the massive auto recalls with them having to lower their earnings. Keep it in mind that they are pulling thousands of vehicles out of their fleet, they can’t put them back until there are parts to fix those vehicles. Many are General Motors vehicles, that are under recall and as a result, they have got a tight supply there and it’s not enough to meet the demand that’s out there and they are also facing some operational challenges [...],” LeBeau added.

Disclosure: None

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