NEW YORK (TheStreet) -- Hertz Global Holdings (HTZ) was falling 3.25% to $27.10 on Monday after the rental car company announced that it had delayed the reporting of its fourth-quarter and full-year 2013 earnings.
Hertz said Monday that it plans to file a Form 12b-25 with the Securities and Exchange Commission to get more time to file its 10-K annual report. The company expects to file the form within the 15-day extension period, which would end on March 18.
"The company recently implemented an enterprise resource planning (ERP) system to improve its financial disclosure controls. As a result of this implementation, the company encountered significant issues during the preparation of its annual financial statements which impacted its resources and overall system of financial reporting," Hertz said in a statement. "During the course of the preparation of the company's 2013 financial statements, the company identified certain adjustments relating to prior periods which will require the company to revise certain of its previously issued financial statements. The company does not expect that these revisions to its financial statements will have a material impact on the company's previously reported results of operations, financial condition, or liquidity."
TheStreet Ratings team rates HERTZ GLOBAL HOLDINGS INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about its recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.8%. Since the same quarter one year prior, revenues rose by 22.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,393.00 million or 43.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.83%.
- Compared to its closing price of one year ago, HTZ's share price has jumped by 48.28%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- HERTZ GLOBAL HOLDINGS INC's earnings per share declined by 14.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HERTZ GLOBAL HOLDINGS INC increased its bottom line by earning $0.54 versus $0.38 in the prior year. This year, the market expects an improvement in earnings ($1.70 versus $0.54).
- The gross profit margin for HERTZ GLOBAL HOLDINGS INC is rather high; currently it is at 53.17%. Regardless of HTZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, HTZ's net profit margin of 6.99% is significantly lower than the industry average.
- You can view the full analysis from the report here: HTZ Ratings Report