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After 18% Rise & 8 Days Up In A Row, Hertz Withdraws 2014 Guidance & Crashes

Tyler Durden's picture




 

Presented with little comment... because if this doesn't wake people up to the unreality of the stock 'market', nothing will. Hertz has ripped higher 8 days in a row, surging over 18% in that period as analysts and talking heads piled on proclaiming how wonderful it is.. and then:

  • *HERTZ HAS DECIDED TO WITHDRAW 2014 FINANCIAL GUIDANCE
  • *HERTZ EXPECTS TO BE WELL BELOW LOW END OF 2014 GUIDANCE

Must be a one-off idiosyncratic issue right?

 

Nope - it's not idiosyncratic...

The Company now expects to be well below the low end of its 2014 guidance due to operational challenges in the rental car and equipment segments as well as the associated costs related to the accounting review previously disclosed.

These ongoing challenges include:

  • Record level, industry-wide OEM vehicle recall activity, which has constrained the Company's U.S. fleet available for rent;
  • Significantly higher-than-expected adjusted direct operating expense in U.S. rental car;
  • Issues and delays associated with the installation of its Enterprise Resource Planning (ERP) and counter systems, which have adversely impacted anticipated synergy capture flowing from the Dollar Thrifty acquisition; and
  • continued soft demand in the equipment rental business segment.

Due to the foregoing, as well as potential revisions related to the ongoing accounting review, the Company has decided to withdraw its 2014 financial guidance.

And here is Jim Cramer's TheStreet.com (from yesterday):

TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

 

"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY.

 

This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover.

 

The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, solid stock price performance and expanding profit margins.

 

We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

 

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Tue, 08/19/2014 - 18:02 | 5116854 Squid Viscous
Squid Viscous's picture

rented from Hertz last month, forgot to fill up the tank and the cocksuckers charged me $9.59/gallon... guess they all do that, but next time I will fill with water right before drop off...

Tue, 08/19/2014 - 18:03 | 5116879 Osmium
Osmium's picture

Topping off the tank with piss would probably work too.

Tue, 08/19/2014 - 18:08 | 5116902 Itchy and Scratchy
Itchy and Scratchy's picture

Lol to both of u!

Tue, 08/19/2014 - 18:17 | 5116966 CrazyCooter
CrazyCooter's picture

Central planning has brought about a new era in business where companies no longer sell products (so last, last century) or service (so last century) but instead they sell stock!

It is pure f-ing genius!

Regards,

Cooter

Tue, 08/19/2014 - 18:29 | 5117057 Stackers
Stackers's picture

The problem with Hertz's equipment rental business is over market saturation. Everyone from car rental companies to home depot now rent small tool equipment.

Tue, 08/19/2014 - 18:40 | 5117123 InjectTheVenom
InjectTheVenom's picture

ouch that chart sure hertz   !!

Tue, 08/19/2014 - 19:28 | 5117390 max2205
max2205's picture

Let the clas action lawsuits begin......you might get something after ten years

Tue, 08/19/2014 - 23:07 | 5118308 asteroids
asteroids's picture

What should scare the shit out of you is... look at the volume. It's down on no volume. If it can happen to Hertz, it can happen to any stawk. For the love of gawd,  if you are in this illusion of a market, go to cash.

Tue, 08/19/2014 - 18:27 | 5117045 GooseShtepping Moron
GooseShtepping Moron's picture

It's hard for a normal man to piss enough to move the needle on a 10-gallon tank. You'll need to invite about a dozen friends over for a kegger.

"Y'all be sure to piss in my gas tank, alright."

(Raised eyebrows.)

"Just call it customer feedback."

Tue, 08/19/2014 - 18:28 | 5117047 ebworthen
ebworthen's picture

A 4 lb. bag of sugar and a funnel - $9.

Getting revenge for being screwed over - priceless.

Tue, 08/19/2014 - 18:10 | 5116919 yogibear
yogibear's picture

Doesn't the gas station do that?

Tue, 08/19/2014 - 18:27 | 5117039 Atomizer
Atomizer's picture

What if your neighbor siffened your gas tank while you where sleeping? People like yourself create the absorbant surcharge. Serves you right, freeloader. 

Tue, 08/19/2014 - 19:45 | 5117467 Freddie
Freddie's picture

Car rental, business trips, vacations - what a quaint concept.  I think people did stuff like that pre-Obama.

Tue, 08/19/2014 - 21:46 | 5117969 mygameon
mygameon's picture

Gallons of bottled water would cost a bunch more than gas. I recommend diesel if you really want to fuck with them.

Wed, 08/20/2014 - 07:33 | 5119001 firstdivision
firstdivision's picture

Fill up the tank with race fuel, it'll burn the shit out of the o-rings so it'll need a rebuild in no time.

Tue, 08/19/2014 - 17:58 | 5116856 Itchy and Scratchy
Itchy and Scratchy's picture

Where's OJ when you need him?

Tue, 08/19/2014 - 18:04 | 5116888 wmbz
wmbz's picture

Sadly that piece of shit son of a bitch is still breathing air on the taxpayers dime.

Tue, 08/19/2014 - 18:41 | 5117125 InjectTheVenom
InjectTheVenom's picture

...still looking for the real killer

Tue, 08/19/2014 - 19:54 | 5117515 Freddie
Freddie's picture

If you have time to waste - his recent parole hearing was on youtube or some other site.  He was all weepy.  I almost felt sorry for him.  The Enquirer or one of the otgher rags said he was eating so much prison junk food that he was going to die. 

Dumb vile murderer.

Tue, 08/19/2014 - 20:08 | 5117516 Freddie
Freddie's picture

OJ dupe post - sorry - he is a scumbag.

Tue, 08/19/2014 - 18:02 | 5116870 Seasmoke
Seasmoke's picture

Fraud. It's what America is cooking !!

Tue, 08/19/2014 - 18:04 | 5116892 fonzannoon
fonzannoon's picture

Honestly looks like it will be a solid btfd.

In any event Tyler should put this up under the chart.

https://www.youtube.com/watch?v=b00-c-bk4U0

Tue, 08/19/2014 - 18:05 | 5116890 Brown Brother
Brown Brother's picture

This Hertz.  Ouch !!!

Tue, 08/19/2014 - 18:08 | 5116909 Itchy and Scratchy
Itchy and Scratchy's picture

Very bad .............................but gud!

Tue, 08/19/2014 - 18:05 | 5116893 drink or die
drink or die's picture

There are about 15 different rental car company options at every major airport now, how do any of these guys make money?

Tue, 08/19/2014 - 18:11 | 5116917 atomp
atomp's picture

Could be fronts, similar to channel stuffing

Tue, 08/19/2014 - 18:10 | 5116921 PeeramidIdeologies
PeeramidIdeologies's picture

By providing competitive services at great prices

Tue, 08/19/2014 - 18:13 | 5116939 LetThemEatRand
LetThemEatRand's picture

And by exceeding customer expectations.  One customer at a time, every time.

Tue, 08/19/2014 - 18:09 | 5116894 NoWayJose
NoWayJose's picture

To boost airfares, airlines cut back on capacity. Higher fares plus less capacity is not good for rental car companies. Add in about a dozen taxes every time you rent a car.

Tue, 08/19/2014 - 18:05 | 5116895 Z_End
Z_End's picture

Any insider sales in the last 8 days?

Tue, 08/19/2014 - 19:11 | 5117290 Chief Wonder Bread
Chief Wonder Bread's picture

That would be kinda stupid, even with the SEC as the only cop on the beat.

But to answer your question, no, nothing material, as far as I can tell.

Tue, 08/19/2014 - 18:05 | 5116896 Fox-Scully
Fox-Scully's picture

I didn't know that Hertz is aware of an early and long winter with ice and snow storms.  Could that have impacted thier predictions?

Tue, 08/19/2014 - 18:09 | 5116913 Atomizer
Atomizer's picture

I was a gold member back in the day. Good company, never any rental issues. Glad to see someone telling the truth regarding future expectations. The other lying bitchez should burn in hell. 

Tue, 08/19/2014 - 18:10 | 5116920 LawsofPhysics
LawsofPhysics's picture

Just more "free market action in a market reflecting true price discovery".

/s

 

Tue, 08/19/2014 - 18:14 | 5116951 starman
starman's picture

Sugar works wonders when it reaches the pistons! 

Tue, 08/19/2014 - 18:20 | 5116983 Squid Viscous
Squid Viscous's picture

heard that as well, I'm going to fuck them over and good trust me ... maybe a new POS mustang...

Tue, 08/19/2014 - 18:44 | 5117141 Atomizer
Atomizer's picture

Squid, stop blaming other people for your own actions. You woke up late, would of missed the flight. Had you stopped to refuel rental car, you would be be complaining that you missed your flight because you had to put gas in the rental car. See how easy it is to spot a dumb fuck who blames his actions on other people?

 

Tue, 08/19/2014 - 19:16 | 5117319 greatbeard
greatbeard's picture

Funny how the personal responsibility folks are willing to put all that rhetoric aside with it's personal personal responsibility.

 

 

Tue, 08/19/2014 - 18:23 | 5117013 yogibear
yogibear's picture

 Try Karo syrup.

Tue, 08/19/2014 - 18:14 | 5116956 NOTaREALmerican
NOTaREALmerican's picture

How can this be when airline travel is on the upswing.   Maybe the record car sales have caused the economy to get so good that business travels are buying cars to leave in their favorate airports so they don't have to rent anymore.  

Tue, 08/19/2014 - 18:19 | 5116982 disabledvet
disabledvet's picture

See below and "for the price of a rental we'll throw in a house too!"

Tue, 08/19/2014 - 18:15 | 5116961 yogibear
yogibear's picture

Where's William Dudley and his Fed banksters buying up the cratering stocks keeping his hyper-stock market bubble inflated?

Tue, 08/19/2014 - 18:28 | 5116992 JuliaS
JuliaS's picture

"...adversely impacted anticipated synergy capture..."

[This kind of language] makes me want to engage in an involuntary personal protein spill.

- George Carlin

Tue, 08/19/2014 - 18:23 | 5117014 ebworthen
ebworthen's picture

Pets.com alert!

Tue, 08/19/2014 - 18:25 | 5117024 yogibear
yogibear's picture

Kaput rental car.

Tue, 08/19/2014 - 18:29 | 5117050 HUGE_Gamma
HUGE_Gamma's picture

so its back to where it was 2 weeks ago.. BTFD!!! will be green by EOD tomorrow 

Tue, 08/19/2014 - 18:32 | 5117069 XRAYD
XRAYD's picture

It is cheaper to buy a car with low payments financed over eight years with nothing down (but your old clunker) .. use it for a few months, and let them re-po it.  Beats renting!  $119 a month or $49 a day?

Tue, 08/19/2014 - 18:31 | 5117071 ebworthen
ebworthen's picture

Cramer spent the first 10 minutes of his show chirping about how right he was about Google on the 10 year anniversary of its I.P.O.

Missed 10 minutes or so but he hasn't mention Hertz yet, and I bet he won't.

Tue, 08/19/2014 - 18:41 | 5117127 Squid Viscous
Squid Viscous's picture

what a buffoon, let's revisit his calls in 3 months or so

Tue, 08/19/2014 - 19:32 | 5117411 Berspankme
Berspankme's picture

Did he bring up Bear Stearns?

Tue, 08/19/2014 - 18:34 | 5117088 ramacers
ramacers's picture

why anyone ever has believed, now does or ever will believe a thing cramer says is beyond me. modern day elmer gantry.

Tue, 08/19/2014 - 19:09 | 5117273 fibonacci's claus
fibonacci's claus's picture

Fill the tank with piss and water!   HA!  LMFAO.  that is funny.  how about filling up the tank with that volatile fuel they keep in those train tankers that keep unexplainably blowing up all over the country and canada!   now that would be a great way to show your corporate loyalty

Tue, 08/19/2014 - 21:03 | 5117811 Freddie
Freddie's picture

Buffet nitro night trains of death.  F him and Munger.

Tue, 08/19/2014 - 19:10 | 5117281 fibonacci's claus
fibonacci's claus's picture

Fill the tank with piss and water!   HA!  LMFAO.  that is funny.  how about filling up the tank with that volatile fuel they keep in those train tankers that keep unexplainably blowing up all over the country and canada!   now that would be a great way to show your corporate loyalty

Tue, 08/19/2014 - 19:22 | 5117348 huggy_in_london
huggy_in_london's picture

Oh man, that just made my day!

Tue, 08/19/2014 - 19:30 | 5117401 Ban KKiller
Ban KKiller's picture

"Accounting review". No shit? All fraud enjoins accountants. 

Yeah, former Gold card holder and always got a white Lincoln Towncar. Never knew what banksters might jump in front of the car. 

Tue, 08/19/2014 - 20:08 | 5117570 Downtoolong
Downtoolong's picture

HERTZ HAS DECIDED TO WITHDRAW 2014 FINANCIAL GUIDANCE

In other words, “Shit, we didn’t think investors were paying attention to this stuff anymore anyway. Why didn’t you tell us you were still going to do an independent check of our facts?”

Tue, 08/19/2014 - 20:53 | 5117779 franzpick
franzpick's picture

They're missing out on a world class ad slogan:

 "IT HERTZ SO GOOD".

Tue, 08/19/2014 - 21:34 | 5117925 orangegeek
orangegeek's picture

'bout time.

Tue, 08/19/2014 - 22:01 | 5118025 yogibear
yogibear's picture

It hertz so much now that we are declining.

Wed, 08/20/2014 - 01:50 | 5118705 q99x2
q99x2's picture

All I want to know is how long it takes for the repo man to show up after purchasing a new car with a subprime loan.

Wed, 08/20/2014 - 08:41 | 5119127 Chuck Knoblauch
Chuck Knoblauch's picture

Scapegoat the internet.

Video conference calls replacing business travel.

Ya, that's the ticket!

https://www.youtube.com/watch?v=pkYNBwCEeH4

That's what Wal-Mart did.

Wed, 08/20/2014 - 08:50 | 5119182 GFORCE
GFORCE's picture

Stairs up, escalator down!

Wed, 08/20/2014 - 09:00 | 5119230 Chuck Knoblauch
Chuck Knoblauch's picture

Why does ZH burry positive economic news like this so fast?

Keep it on page 1 for a few days.

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