Hertz's shares tumble 23% after fall in value of its cars, revenue

Washington

HERTZ Global Holdings lost almost a quarter of its market value after the rental-car company reported a third-quarter profit that badly trailed analysts' estimates and cut its annual earnings forecast, blaming a decline in revenue and a drop in the value of its cars.

Hertz shares fell 23 per cent, wiping out US$739 million in equity value, and its bonds were among the worst performers on Tuesday. Quarterly adjusted profit of US$1.58 a share was far below the average estimate of US$2.73 in a Bloomberg survey, and Hertz said full-year earnings may be less than a fifth of what it projected in August.