Hertz Surpasses EV Sales Target by 10,000 Units Despite Significant Loss
Hertz Surpasses EV Sales Tar...
Subscribe to Newsletter

Hertz Surpasses EV Sales Target by 10,000 Units Despite Significant Loss

25 April 2024
2 min.
Hertz Surpasses EV Sales Target by 10,000 Units Despite Significant Loss

Hertz's Shocking Slide

Hertz Global Holdings Inc. saw its shares continue their descent on Thursday, following the disclosure of its Q1 financial results. The results unveiled a larger-than-anticipated loss and an augmented strategy to divest its electric vehicles (EVs).

The company’s CEO, Gil West, linked the quarter’s performance to elevated fleet and operational costs, while reassuring investors of their efforts to address these issues. The stock experienced a 5.2% dip in premarket trading amidst ongoing market fluctuations, despite a brief 6.2% rise on Wednesday after a six-day slump that led to a record low.

In the course of the quarter, Hertz declared an expansion in its EV disposition plan, incorporating an additional 10,000 vehicles. This represents a 50% increase, with an overall target of 30,000 EV sales set for 2024. This decision resulted in a $195 million charge to depreciate the value of EVs marked for sale, on top of a $245 million charge from the previous quarter.

The financial report for the quarter ending March 31 showed a net loss of $186 million, or 61 cents per share, a stark contrast to the net income of $196 million, or 61 cents per share, from the same period the previous year. The adjusted per-share loss, which excludes nonrecurring items, came to $1.28, substantially exceeding the FactSet consensus of 45 cents.

Despite the loss, the company’s revenue saw a slight 1.6% increase, reaching $2.08 billion and surpassing the FactSet consensus of $2.04 billion. This growth was credited to a surge in demand from leisure and rideshare customer segments.

Although the revenue per transaction day (RPD) saw a 7% year-over-year decline, falling to $56.68, there were indications of recovery as the quarter advanced, with March RPD only down by 3%.

A significant factor contributing to the financial hurdles was the $588 million rise in vehicle depreciation, or $339 per vehicle. This was mainly due to revised forecasts of future residual values and disposition losses, especially for internal combustion engine vehicles. Of this increase, $119 per vehicle was associated with EVs earmarked for sale.

So far this year, Hertz’s stock has taken a 44.2% hit, surpassing the declines of its competitor, Avis Budget Group Inc., which fell by 41.7%. Meanwhile, the broader market, represented by the S&P 500, reported a gain of 6.3%.

Persons1 and Companies2 in the news

Chief Executive Officer of Hertz Global Holdings
1 place
2 place
Source foto:
Rating companies
16 Mention
15 Mention
13 Mention
JP Morgan Chase
11 Mention
Ford Motor Company
11 Mention
10 Mention
White House
7 Mention
Goldman Sachs
7 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year