Zipcar Tanks As Growth Slows
9:55 AM ET 8/3/12 | TREFIS
Zipcar (NYSE:ZIP) announced its Q2 results on Thursday with 15% growth in revenues (y/y) and 21% increase in membership base to 731K. Even though it continued to post a loss, it came much closer to profitability than ever. However, the growth missed market and company’s own expectations, leading to weaker forecasts for the next quarter and current fiscal. As a result, its stock tanked 20% in after-hours trading, falling $2.13 down to $8.50, below the company’s 52-week low for intraday trading and is down heavily in early trading.
Zipcar serves 730K members with a fleet of over 11K vehicles in North America and Europe. Aside from competing with traditional rental companies and car-sharing services like Hertz On Demand,Enterprises WeCar, UHauls UCarShare and City Car Share.
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