Shares of Hertz Global Holdings fell nearly 17% on Tuesday after the company reported weak earnings for the first quarter and announced a $250 million stock offering.
The car rental company said it lost $1.12 per share, which was worse than the expected loss of 97 cents. Revenue was $1.81 billion, below the expected $2 billion.
Hertz also said it would offer fewer rental cars because of lower bookings, rising vehicle prices, and new tariffs from President Donald Trump.
Before the earnings call, the stock was only down 3%. After the call, it dropped over 20% before closing the day down about 17%.
Hertz said the stock offering is part of a plan to pay off debt. The number of shares and the final amount raised will be decided later.
The company also said it had a record number of car sales to retail customers and plans to focus on cutting costs in the coming months.
Hertz expects to report positive earnings before interest and taxes by the third quarter of 2025.
