Boston, MA 03/04/2014 (wallstreetpr) – Hertz Global Holdings, Inc. (NYSE:HTZ) may have to delay filing its financial results and may seek a 15 day extension. The delay is said to be the result of an enterprise resource system (ERP) implementation.
The Cause Of Worry:
The implementation is resulting in some significant issues during the preparation of annual reports of Hertz Global Holdings, Inc. (NYSE:HTZ). The system has affected the overall system of financial reporting. In short, the system was implemented at the wrong time and could not operate efficiently to deliver results in time. However, the delay can be overlooked if it results in better financial controls as well as financial disclosure controls.
However, investors are spooked as the company has also announced that the system has identified certain adjustments to prior periods and the company may have to revise previously issued financial statements. This is the main cause of worry. Though Hertz does not expect the adjustments to be of a material value, markets do not like uncertainty. The investors are jittery and the stock lost nearly 3% of its value over the last closing to close at $27.25 per share on March 3, 2013.
The Competition Marches On:
While Hertz Global Holdings, Inc. (NYSE:HTZ) is busy in resolving the issue, the competition is marching on. Avis Budget Group Inc. (NASDAQ:CAR) is aggressively increasing the number of company operated locations. The company is targeting fast growing markets in order to expand its global footprint. Avis will be acquiring the license in Alberta, Canada for approximately $30 million plus fleet costs. This will add 26 rental locations in seven cities to its fold. It will also operate directly in Portugal.
Hertz will have to deal with the issue head on. Analysts expect the company to declare revenues of $10.84 billion with earnings of $1.70 per share for the full year. There is now a bit of uncertainly about prior period adjustments. Future guidance is also not very forthcoming on this account.
