Shares of Hertz Global Holdings Inc. (HTZ) fell late Monday after the car rental company posted a wider-than-expected first-quarter loss, saying that results were "significantly impacted by COVID-19 pandemic." Hertz said it lost $356 million, or $2.50 a share, in the quarter, compared with a loss of $147 million, or $1.54 a share, in the year-ago period. Adjusted for one-time items, Hertz said it lost $1.78 a share, compared with a loss of 87 cents a year ago. Revenue fell to $1.92 billion from $2.11 billion a year ago. Analysts polled by FactSet had expected an adjusted loss of $1.21 a share on sales of $1.95 billion. The year started well, Hertz Chief Executive Kathryn V. Marinello said in a statement. "Yet in just two months, the outbreak of the coronavirus created a major business disruption as global travel demand dropped to almost zero and the U.S. used-car market effectively shut down. We immediately shifted our business priorities to focus on employee and customer safety, expense mitigation and preserving liquidity," she said. Hertz said that during the quarter it drew down $595 million from a credit line and ended the period with about $1 billion in cash and cash equivalents. Hertz reportedly has hired advisers ( ) to guide it with its debt load and ahead of a possible bankruptcy filing. Shares had ended the regular trading day down 2.5%.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 11, 2020 17:54 ET (21:54 GMT)
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