Hertz Shares Rise After Company Tops Quarterly Views

By Claudia AssisMarketsMarketWatch Pulse

Shares of Hertz Global Holdings Inc. rose 5% late Tuesday after the car-rental company reported narrower-than-expected quarterly losses and sales in line with expectations. Hertz said it lost $158 million, or $1.90 a share, in the second quarter, compared with a loss of $43 million, or 33 cents a share, in the year-ago period. Adjusted for one-time items, the company reported a net loss of $52 million, or 63 cents a share, in the quarter, versus a net income of $35 million, or 41 cents a share, in the same period last year. Total revenues for the second quarter reached $2.2 billion, compared with $2.3 billion in the second quarter 2016. Analysts polled by FactSet had expected an adjusted per-share loss of 20 cents on sales of $2.2 billion. Hertz said in a statement it had made "significant progress" in the first half of 2017 with its turnaround plan, but "the hard work always comes before" a payoff as reflected on the quarterly results, which also showed increased spending and a "challenging" business environment in the U.S. for Hertz. Rival Avis Budget Group Inc. reported Monday, missing expectations.

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