Hertz Global misses by $0.18, beats on revs
- Reports Q4 (Dec) loss of $0.77 per share, excluding non-recurring items, $0.18 worse thanthe Capital IQ Consensus of ($0.59); revenues rose 4.1% year/year to $2.09 bln vs the $2.06 bln Capital IQ Consensus.
- Strategic investments:
- 2018 expenses will continue to be elevated as the Company remains committed to its U.S. operating turnaround initiatives. The elevated expense level will be targeted toward new marketing campaigns, ongoing field process improvements, an upgraded model-year 2018 fleet and the deployment of several redesigned technology platforms. The benefits from its U.S. turnaround program are expected to accelerate in 2019
- Tax reform:
- The enactment of U.S. tax reform resulted in the Company recording an estimated net benefit of $679 million, resulting from the remeasured valuation of its net deferred tax liabilities. It does not anticipate a liability from the one-time charge on accumulated foreign earnings. Due to the lower corporate tax rate in 2018, the Company's effective tax rate now is estimated to be between 23% and 26% on results in future years