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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!