Hertz: Write-downs Impact Quarterly Financial Statement

Car rental company Hertz reported a larger-than-expected loss in the third quarter and missed revenue expectations, leading to a more than 8% drop in its stock in pre-market trading. A significant factor was the depreciation costs for the company's vehicle fleet. Throughout the quarter, Hertz incurred an impairment charge of one billion dollars as the residual values of the fleet—the sale value of the vehicles after their operational use—decreased last year. Earlier this year, Hertz initiated the sale of around 20,000 electric vehicles, including those from Tesla, due to the higher repair costs associated with these vehicles. The depreciation per vehicle rose by 89% compared to the previous year, reaching 537 million dollars in the quarter ended September 30. Adjusted for special items, the company reported a loss of 68 cents per share, while analysts had expected an average loss of 50 cents, according to data from LSEG. Overall, quarterly revenues declined by 5% from the previous year to 2.58 billion dollars, while analyst estimates were around 2.7 billion dollars.