Rental-car company expects charges of $245 million in Q4

  • Hertz is selling about 20,000 electric vehicles from its fleet
  • Expects to book charges of about $245 million in Q4
  • Move aimed at balancing supply and demand for EVs
  • Hertz will continue to offer EVs but implement measures to boost profitability
  • Reinvesting in internal combustion engine vehicles to improve financial results

Hertz Global Holdings Inc. announced that it will be selling about 20,000 electric vehicles from its fleet, representing approximately one-third of the total. This decision comes as Hertz aims to better balance the supply and expected demand for EVs. The company expects to book charges of about $245 million in the fourth quarter as a result of this move. The high collision and damages costs associated with EVs in the fourth quarter have also contributed to this decision. However, Hertz will continue to offer EVs and plans to implement measures to boost profitability. This includes expanding infrastructure such as charging stations and growing relationships with EV makers to ensure more affordable access to parts and labor. Additionally, Hertz will reinvest in additional internal combustion engine vehicles, which is expected to improve its financial results. The company anticipates generating incremental free cash flow of approximately $250 million to $300 million over 2024 and 2025. Hertz has backed its revenue guidance for the fourth quarter and expects adjusted EBITDA to be negatively impacted by the EV sales plan. Despite a slight increase in premarket trading, Hertz stock has fallen 44% in the last 12 months.

Public Companies: Hertz Global Holdings Inc. (HTZ)
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Factuality Level: 7
Justification: The article provides information about Hertz selling 20,000 electric vehicles from its fleet and the charges it expects to incur. It also mentions the company’s plans to boost profitability and reinvest in internal combustion engine vehicles. The information provided seems to be based on Hertz’s statements and regulatory filings, which adds credibility to the article. However, there is no mention of any opposing viewpoints or potential challenges that Hertz may face in implementing its plans, which could indicate a lack of balanced reporting.

Noise Level: 3
Justification: The article provides relevant information about Hertz Global Holdings Inc. selling electric vehicles from its fleet and the expected charges and impacts on the company’s financial results. However, the article lacks in-depth analysis, evidence, and actionable insights. It also includes unrelated information about the stock performance of Hertz and the S&P 500.

Financial Relevance: Yes
Financial Markets Impacted: Hertz Global Holdings Inc.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Hertz Global Holdings Inc. selling a significant number of electric vehicles from its fleet and the expected charges and impacts on its financial results.

Reported publicly: www.marketwatch.com