(Reuters) -Hertz Global swung to a third-quarter profit after nearly two years on Tuesday, as the company relied on used vehicle sales and a newer fleet of rental cars to drive demand, sending its shares up 42%. The company has attempted to diversify operations by revamping its vehicle fleet and offering a fully online car-buying […]
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Hertz surges after swinging to third-quarter profit
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(Reuters) -Hertz Global swung to a third-quarter profit after nearly two years on Tuesday, as the company relied on used vehicle sales and a newer fleet of rental cars to drive demand, sending its shares up 42%.
The company has attempted to diversify operations by revamping its vehicle fleet and offering a fully online car-buying marketplace to contend with a slowdown in rental activity.
A slump in demand prompted it to shed much of its electric-vehicle fleet in favor of gas-powered cars over the past few years. Hertz offloaded a majority of its Teslas last year, citing higher repair costs.
Hertz earned 12 cents per share on an adjusted basis in the third quarter, compared with analysts’ average estimate of 2 cents per share, according to data compiled by LSEG.
Its overall quarterly revenue fell 4% to about $2.5 billion from a year ago, but still topped estimates of $2.4 billion.
(Reporting by Nathan Gomes in Bengaluru; Editing by Shreya Biswas)