Hertz Global Cuts Full-year Outlook - Update

(RTTNews) - Car and equipment rental provider Hertz Global Holdings, Inc. (HTZ) Wednesday lowered its adjusted earnings as well as revenue guidance for the full-year 2013, citing weaker-than-anticipated volume in Hertz brand in the U.S. airport car rental market.

The shares are down about 11 percent in pre-market trading.

The company currently expects adjusted net income for the year to be in the range of $780 million to $830 million, down from the prior outlook of $830 million to $875 million. Adjusted earnings per share are now expected to be in the range of $1.68 to $1.78, lower than $1.78 to $1.88 per share projected earlier.

On average, nine analysts polled by Thomson Reuters expect earnings per share of $1.89 for the year. Analysts' estimates typically exclude one-time items.

According to Hertz, the revised guidance for adjusted earnings per share range is based on 465 million shares, while the earlier outlook was based on 455 million shares, which has been impacted by its share price throughout the year. The company estimates that the share count difference results in a $0.04 per share variance. Based on a share count of 455 million shares, the earlier forecast for adjusted earnings per share range was $1.82 to $1.92.

Revenues for the full year are now estimated to range between $10.8 billion and 10.9 billion, compared with the previous guidance range of $10.85 billion to $10.95 billion. Eight analysts project revenues of $10.91 billion for the year.

Guidance for corporate cash flow remains unchanged at $500 million to $600 million range.

Mark Frissora, chairman and chief executive officer of the company said, "We are revising full year 2013 guidance primarily because of weaker than anticipated volume generated by the Hertz brand in the U.S. airport car rental market, our largest business."

However, the company noted that stronger pricing in the U.S. airport car rental market is helping to partially offset softer volume.

In July end, Hertz Global reported a profit for the second quarter that increased from last year, reflecting double-digit revenue growth amid contributions from the Dollar Thrifty acquisition. At that time, the company had backed its earnings and revenue forecast for the full-year 2013, issued in February this year.

HTZ closed Tuesday's regular trading at $25.78 on the NYSE. In the pre-market activity on Wednesday, the shares are down 10.82 percent.