Hertz Results Hit by $1B Impairment Charge

Hertz Global Holdings (HTZ) reported a wider-than-expected third-quarter loss Tuesday, dinged by a non-cash asset impairment charge of $1 billion. 

The rental car company reported revenue of $2.58 billion, down 5% year-over-year and below the consensus estimate of analysts compiled by Visible Alpha. After stripping out the impairment charge, Hertz’s adjusted net loss of $208 million, or 68 cents per share, was wider than expected.  

Hertz said the impairment charge was due to a “decline in fleet residual values over the last year or so.” The company acknowledged its strategy of trying to maximize revenue per unit (RPU) “resulted in volume declines.”

Hertz shares initially declined Tuesday before changing course, recently gaining 3%. Still, the stock has lost about two-thirds of its value in 2024, thanks in part to other big charges incurred this year, including writing down the value of 30,000 electric vehicles.