Boston, MA 06/06/2014 (wallstreetpr) – Hertz Global Holdings, Inc. (NYSE:HTZ), the firm, that will be soon splitting into publicly traded companies by early 2015, plunged by more than 10% in the early trading hours. It is the steepest intraday fall in the seven months. The investors are worried about the accounting problems in the financial statements of 2011. The company also reiterated that the quarterly results will stay below the street’s expectations. The car-rental revenue will see a fall in the quarterly results.
Restatement issues
The first major problem that is troubling investors is the restatement. The audit committee has made it clear that the financial statements for 2011 will undergo restatement. As a result, there will be some corrections made in the financial figures of its 2012 and 2013 reports. There will be a thorough review of the financial reports of all the three years. It will result in material adjustments in the report of last two years.
The problem of financial results
The second problem that is troubling shareholders is of financial projections. Hertz Global Holdings, Inc. (NYSE:HTZ) will report its first-quarter earnings on June 9. The results are expected to stay short of the street’s expectations. The projections have pushed the investors at a back seat. The impact of the restatement will be visible on the financial results. The costs associated with the reviews and other items will reflect on the first quarter results. Hertz talked about the US rental car revenue. It showed a rise of 4.5% in the quarter. However, the total revenue per day declined by 1.6% as compared to the same time a year earlier. Hertz also talked about the second quarter results.
The confusions
As of now, the shareholders are confused about the restatement and the results projections. The best way opted is to sell away and sit in the wait-and-watch mode. The more clarity will come after June 9, when Hertz Global Holdings, Inc. (NYSE:HTZ) will report its first quarter results.
