Why Hertz Global Holdings, Inc. Stock Hit a Curb Today

Hertz Global Holdings news today leaves investors unnerved.

Mar 3, 2014 at 2:35PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Hertz Global Holdings (NYSE:HTZ) are being thrown in reverse, down as much as 4.7% today following news that it will miss the deadline for filing its 10-K and will need to file a 15-day extension.

So what: Hertz blamed the delay on the implementation of an "enterprise resource planning (ERP) system to improve its financial disclosure controls." This resulted in "significant issues during the preparation of its annual financial statements which affected its resources and overall system of financial reporting." In other words, it wasn't up to speed in time for the report.

While that may be easily forgivable, the part that is getting investors a bit spooked is that Hertz warned that the new system identified "certain adjustments relating to prior periods which will require the Company to revise certain of its previously issued financial statements." Restatements are rarely fun.

Now what: Although Hertz said it doesn't "expect" the adjustments to be of a material nature, the market hates uncertainty especially on a widespread red day. There will naturally be a bit of concern that the adjustments may turn out to be more severe than Hertz originally thought.

Hertz didn't give a specific date for its earnings release and conference call other than that they will occur in "conjunction with filing its Form 10-K on or before March 18, 2014." The lack of a committed time this late in the season is a bit unsettling.

Analysts expect Hertz to report $10.84 billion in sales with earnings per share of $1.70 for the year. Look for the 10-K to be filed by the 18th. If it is, and with no material adjustments to prior years as is expected, and earnings and guidance come within expectations, then the weakness may prove to be opportunity. However, cautious Fools may want to wait on the sidelines until this (hopefully) temporary fog of uncertainty clears.

A new way to pay for your Hertz car rental...
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.

 

Nickey Friedman has no position in any stocks mentioned. The Motley Fool owns shares of Hertz Global Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers