NEW YORK (TheStreet) --Shares of Hertz Global Holdings Inc. (HTZ) are lower by -12.55% to $27.60 in pre-market trading on Wednesday, after the company announced yesterday afternoon it's pulling its full year financial guidance and is now expecting 2014 results to be "well below" its previous estimates, Reuters reports.
The car rental company originally forecast for a full year adjusted profit of $1.70 to $2 per share, on $11.4 billion to $11.7 billion in revenue.
Hertz issued a regulatory filing saying it's not expecting to reach those estimates due to operational challenges, including car recalls, higher operating expenses, and slow demand in its equipment retail business, Reuters added.
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Analysts polled by Thomson Reuters expected the company to report profit of $1.82 per share on revenue of $11.48 billion.
Additionally, as a result of the company lowering it guidance, analysts at JPMorgan (JPM) reduced its rating to "neutral" from "overweight."
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 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 revenue growth, compelling growth in net income, 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 generally high debt management risk by most measures that we evaluated."