By Chibuike Oguh
NEW YORK (Reuters) -Shares of Hertz Global fell more than 20% on Tuesday after the rental car company’s results missed Wall Street expectations due to reduced vehicle fleet and a moderation in bookings.
Estero, Florida-based Hertz reported a nearly 13% drop in revenue on Monday to $1.81 billion and a narrower adjusted net loss of $1.12 per share, down 13% from a year ago.
Analysts had expected Hertz to report revenue of $2 billion and adjusted net loss per share of 97 cents.
Hertz is on track to snap four straight days of gains after falling as low as $5.51, down nearly 21% in early Tuesday trading. It has since trimmed those losses and was off 13.5% at $5.99, but is up nearly 61% year-to-date.
Hertz said the drop in its revenue was primarily due to reduced fleet capacity, which is down 8% year-on-year. The company has seen a moderation in demand for bookings from corporate, government and U.S. inbound customers.
Last month, hedge fund billionaire Bill Ackman boosted his stake in Hertz to nearly 20% through his investment management company Pershing Square, sending its shares up 56%.
(Reporting by Chibuike Oguh and Lance Tupper in New York; Editing by Bill Berkrot)
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