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Hertz Forecasts Surprise Profit

Tuesday, 28 Jul 2009 | 5:45 PM ET

On Tuesday after the bell, car rental firm Hertz, forecast quarterly profit above market estimates and said it sees no significant long-term financial impact from General Motors and Chrysler bankruptcies. The company also forecast a surprise full-year profit.

"Our car rental demand in the U.S. and Europe has stabilized and we are experiencing better-than-anticipated summer peak reservation build in both markets," Chief Executive Mark Frissora tells Fast Money.

Hertz, which is adding fleet, sees second-quarter earnings of 9 cents to 10 cents a share on an adjusted basis, and worldwide revenue of $1.70 billion to $1.75 billion. Analysts on average were expecting earnings of 3 cents a share, before special items, on revenue of $1.90 billion, according to Reuters Estimates.

Hertz expects U.S. car rental transaction days to improve year-over-year in the second quarter.

Its average car rental fleets for the second quarter are, however, expected to be 14.6 percent lower year-over-year in the United States and 17.3 percent lower in Europe.

For 2009, Hertz sees adjusted earnings of 12 cents to 15 cents a share, while analysts were looking for a loss of 21 cents a share, before items.

Learn more about this company. Check out our exclusive interview with Hertz CEO Mark Frissora. Watch the video now!

Hertz CEO on Consumer
Discussing the state of the consumer, with Mark Frissora, Hertz Global Holdings chairman & CEO and the Fast Money crew.



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