(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
Hertz surges after swinging to third-quarter profit
Hertz's Financial Performance and Strategic Changes
(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 27% in premarket trading.
Shift in Vehicle Fleet Strategy
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.
Quarterly Earnings Overview
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.
Revenue Trends and Market Response
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)
