Hertz's Stock Tumbles After Warning Of Disappointing Earnings, Car Rental Revenue

Shares of Hertz Global Holdings Inc. tumbled 6.2% in premarket trade Monday, after the car rental company warned that first-quarter U.S. car rental revenue and adjusted earnings per share would be below previous expectations. U.S. rental car revenue per available car day (RACD) is expected to decline in the range of 2.5% to 3.5% from a year ago, while transaction days are expected to increase in the "low single-digit" range. For the 2016, Hertz now expects total car rental revenue to be flat to down 1.5%, compared with previous guidance of an increase of 1.5% to 2.5%. "We are disappointed that the pricing pressure experienced late in 2015 further intensified in the first quarter of 2016," said Chief Executive John Tague. The stock has plunged 32% year to date through Friday, while the S&P 500 has gained 0.2%.