Hertz Global Holdings Inc. (NYSE:HTZ) shares were weak in pre-market trading after the car-rental company reported below forecast fourth-quarter earnings after-hours on Tuesday and said further technology investments would be needed.
The NYSE-listed firm reported quarterly earnings of US$616mln, or US$7.42 a share, a turnaround from a loss of $5.30 a share a year earlier after including a one-off benefit of US$679mln related to US tax changes.
More competitive earnings profile by 2019
However, adjusted for the one-time items, Hertz lost US$64mln, or 77 US cents a share in the quarter, compared with a loss of 71 cents a year ago, off the consensus forecast for earnings of 60 US cents a share.
The firm’s fourth-quarter revenue rose by 4% to US$2.1bn, up from US$2bn a year earlier, only fractionally better than forecasts of US$2.06bn.
Hertz’s chief executive Kathryn V. Marinello said in a statement: “In 2018, we expect to see continued progress from our US improvement programs.
“However, we also will have elevated investments throughout the year as we implement several, major technology conversions.”
She added: "By 2019, we should begin to evolve toward a more competitive earnings profile."
In pre-market New York trading, Hertz shares were 3.4% lower at US18.60.