Hertz (HTZ 17.33, -1.93) has slumped 10.3% after reporting mixed results. The decline puts the stock back below its 200-day moving average of $18.73.
The auto rental agency reported a worse than expected fourth quarter loss of $0.77 per share on a 4.1% year-over-year increase in revenue to $2.09 billion, which was ahead of estimates.
The company expects it will begin capitalizing on last year's restructuring as 2018 continues, though expenses are expected to remain elevated throughout the year due to new marketing campaigns.
Looking at the segment breakdown, U.S. Rental revenue grew 1.4% year-over-year to $1.44 billion. Average vehicle count declined 0.5% to 470,800, but transaction days increased 2.7% to 34,958 due to increased rentals to commercial customers, insurance replacement, and ride-hailing drivers. Revenue per day declined 1.2% to $40.53 while revenue per unit increased 1.9% to $1003. Net depreciation per unit per month declined to $302 from $321. Segment adjusted EBITDA grew 25.0% to $10 million.
International Rental revenue rose 10.4% to $487 million. Average vehicle count was unchanged at 163,100 while transaction days increased 0.5% to 10,935. Excluding the sale of the rental car and leasing operation in Brazil, transaction days rose 6.0%. Revenue per day increased 3.2% to $40.42 while revenue per unit increased 3.7% to $903. Segment adjusted EBITDA fell 52.2% year-over-year to $11 million.
Revenue from the Donlen leasing operation rose 10.6% to $167 million. Segment adjusted EBITDA increased 11.1% to $20 mln.