It appears that Hertz’s luck may finally be turning around. On Wednesday, after positive comments by CEO Kathryn Marinello, shares of Hertz Global Holdings (NYSE:$HTZ) flew almost 20%.
“We have made significant progress in the first half of the year, executing on our operating turnaround plan,” Marinello said on Tuesday. “Admittedly, we still have a lot of work to do, but these early wins are evidence that we have the right plan in place to ultimately achieve best-in-class outcomes.”
Additionally, Marinello says the rental-car company is starting to move its focus to downsizing its fleet of depreciating cars by increasing spending to complete the “transformation” of its fleet.
“Of course, the hard work always comes before the payoff, as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S,” Marinello said.
On Tuesday, Hertz Global Holdings reported a wider-than-expected loss for Q2 results. The Estero, Florida-based company reported a loss of 63 cents on revenue of $2.22 billion, while the Street predicted a loss of 20 cents on revenue of $2.22 billion, according to Thomson Reuters.
What caused the huge loss? Many speculate it was primarily due to an increase in vehicle depreciation. Hertz Global Holdings said that its net depreciation per vehicle per month was 27% higher than its net depreciation in the same quarter of last year.
The takeaway? Despite posting a wider-than-expected loss for the second quarter, Hertz Global Holdings shares still increased today.
Featured Image: twitter
