Shares of Hertz Global have declined following a reduction in its target price by Oppenheimer. The company's third-quarter and full-year outlook have been lowered.
At 12:56 pm E.T., Hertz Global's shares were down 8.4% at $13.82, reflecting a 21% drop over the past three months.
According to analysts at Oppenheimer, the total revenue per transaction day is now expected to increase only 1% to 2% quarter over quarter, compared to previous expectations of mid-single digit growth. This would result in a $100 million shortfall for Hertz.
In terms of specific figures, the investment bank now predicts third-quarter revenue of $2.71 billion, down from the previous estimate of $2.76 billion. They also expect earnings before interest, taxes, depreciation, and amortization to be $376 million, a decrease from the previous estimate of $496 million.
The revised outlook also includes lower full-year revenue at $9.38 billion, down from $9.43 billion, and an EBITDA of $1.20 billion, down from $1.32 billion.
Analysts state that while demand and utilizations remain strong, pricing increases have not met expectations due to intensified competition and a higher proportion of lower-priced offerings.