Hertz shares dropped 14.8% in afternoon trading after the company slashed its second-quarter profit forecast and unveiled plans to raise capital through stock and note offerings. The car rental firm lowered its second-quarter Adjusted Corporate EBITDA guidance to a range of $50 million to $80 million, citing unexpected softness in the used car market that increased depreciation costs and caused losses on vehicle disposals. Hertz also announced plans to offer $100 million in common stock and $300 million in exchangeable senior notes, moves often viewed by investors as a sign of cash needs. Analysts at firms including J.P. Morgan reiterated their Sell ratings on the stock following the news.
Hertz Global Holdings IncHertz slashed Q2 profit forecast and announced capital raise, leading to analyst downgrades and stock drop.