NEW YORK (TheStreet) -- Hertz (HTZ) - Get Report stock is plummeting 14.42% to $7.39 in afternoon trading on Wednesday after rival car rental company Avis (CAR) issued weaker-than-expected 2016 guidance, citing industry-wide headwinds.
Avis now expects that full-year per-share earnings will range between $2.70 and $3.30, below analysts' estimates for earnings of $3.43 per share.
The car rental company projects that foreign currency exchange rates will negatively impact earnings by 17 cents per share and revenue by $140 million.
Per-unit fleet costs are expected to range between $280 and $290 per month, up from $277 per month last year.
Avis also conceded that it experienced "softer-than-expected growth in commercial demand" during 2015, according to a statement.
"We expect Avis Budget Group shares (and Hertz) will come under pressure...given the large variance between guidance/fundamentals and Street estimates (and likely buy-side estimates as well)," JPMorgan (JPM) wrote in a note, Barron's reports.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Hertz's weaknesses include its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: HTZ
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.