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Tuesday, August 19, 2014 6:40:58 PM
After 18% Rise & 8 Days Up In A Row, Hertz Withdraws 2014 Guidance & Crashes
Presented with little comment... because if this doesn't wake people up to the unreality of the stock 'market', nothing will. Hertz has ripped higher 8 days in a row, surging over 18% in that period as analysts and talking heads piled on proclaiming how wonderful it is.. and then:
•*HERTZ HAS DECIDED TO WITHDRAW 2014 FINANCIAL GUIDANCE
•*HERTZ EXPECTS TO BE WELL BELOW LOW END OF 2014 GUIDANCE
Must be a one-off idiosyncratic issue right?
Nope - it's not idiosyncratic...
The Company now expects to be well below the low end of its 2014 guidance due to operational challenges in the rental car and equipment segments as well as the associated costs related to the accounting review previously disclosed.
These ongoing challenges include:
•Record level, industry-wide OEM vehicle recall activity, which has constrained the Company's U.S. fleet available for rent;
•Significantly higher-than-expected adjusted direct operating expense in U.S. rental car;
•Issues and delays associated with the installation of its Enterprise Resource Planning (ERP) and counter systems, which have adversely impacted anticipated synergy capture flowing from the Dollar Thrifty acquisition; and
•continued soft demand in the equipment rental business segment.
Due to the foregoing, as well as potential revisions related to the ongoing accounting review, the Company has decided to withdraw its 2014 financial guidance.
And here is Jim Cramer's TheStreet.com (from yesterday):
TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY.
This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.
The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins.
We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Source: http://www.zerohedge.com/news/2014-08-19/after-18-rise-8-days-row-hertz-withdraws-2014-guidance-crashes
Presented with little comment... because if this doesn't wake people up to the unreality of the stock 'market', nothing will. Hertz has ripped higher 8 days in a row, surging over 18% in that period as analysts and talking heads piled on proclaiming how wonderful it is.. and then:
•*HERTZ HAS DECIDED TO WITHDRAW 2014 FINANCIAL GUIDANCE
•*HERTZ EXPECTS TO BE WELL BELOW LOW END OF 2014 GUIDANCE
Must be a one-off idiosyncratic issue right?
Nope - it's not idiosyncratic...
The Company now expects to be well below the low end of its 2014 guidance due to operational challenges in the rental car and equipment segments as well as the associated costs related to the accounting review previously disclosed.
These ongoing challenges include:
•Record level, industry-wide OEM vehicle recall activity, which has constrained the Company's U.S. fleet available for rent;
•Significantly higher-than-expected adjusted direct operating expense in U.S. rental car;
•Issues and delays associated with the installation of its Enterprise Resource Planning (ERP) and counter systems, which have adversely impacted anticipated synergy capture flowing from the Dollar Thrifty acquisition; and
•continued soft demand in the equipment rental business segment.
Due to the foregoing, as well as potential revisions related to the ongoing accounting review, the Company has decided to withdraw its 2014 financial guidance.
And here is Jim Cramer's TheStreet.com (from yesterday):
TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY.
This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.
The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins.
We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Source: http://www.zerohedge.com/news/2014-08-19/after-18-rise-8-days-row-hertz-withdraws-2014-guidance-crashes
Economics by Following the Money ~ Globally & Nationally on Twitter @Conan644
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