NEW YORK (TheStreet) -- Shares of Hertz Global Holdings (HTZ) are dropping -9.32% to $27.65 in pre-market trade on Friday after it said it would have to restate and correct its financial results from 2011 through 2013 as a result of accounting problems.
The company's audit committee said the financial statements for 2011 "should no longer be relied upon and Hertz must restate them," according to an SEC filing released this morning.
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The car rental company is also delaying its first quarter results.
Hertz was scheduled to report first quarter 2014 earnings on June 9. It warns that results are likely to be below estimates as a result of costs associated with the accounting review and other items.
Separately, 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 their recommendation:
"We rate HERTZ GLOBAL HOLDINGS INC (HTZ) a BUY. This is driven by some important positives, 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 revenue growth, compelling growth in net income, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."