Shares of Hertz Global Holdings, Inc. (NYSE:HTZ), a vehicle rental company with brands such as Hertz, Dollar, and Thrifty, declined 16% Tuesday afternoon after releasing mixed fourth-quarter results.
Fourth-quarter sales increased 1.4% from the prior year to $2.33 billion, just slightly missing analysts' estimates of $2.34 billion. Adjusted earnings per share checked in with a $0.24 loss, which managed to top analysts' estimates calling for a $0.27-per-share loss. Despite missing earnings estimates, Hertz CEO Kathryn Marinello put a positive spin on its top-line growth: "We have made tremendous progress over the past three years in re-igniting topline growth, driving margin expansion and improving customer satisfaction. Our latest results reflect 10 straight quarters of year-over-year revenue growth and nine consecutive quarters of year-over-year adjusted corporate EBITDA growth."
It's been a rough couple of years for investors of Hertz, as the company has struggled to convince investors it can thrive in a world where daily transportation is rapidly evolving thanks to ride sharing, car sharing, and other smart mobility solutions. Management has its work cut out for it if it is to find new revenue opportunities using its existing scale and capabilities, while attempting to improve its operational efficiency and costs to support its bottom line. So far, investors seem unconvinced it has the long-term strategy needed to succeed.