NEW YORK (TheStreet) -- Shares of Hertz Global Holdings (HTZ) , the rental car company's parent, were down a staggering 50.48% to $17.70 in Tuesday morning trading after the company badly missed its third quarter earnings projections.
Hertz reported earnings per share of $1.58 on roughly $2.54 billion in revenue after the market closed Monday. Analysts surveyed by FactSet had expected it to post earnings of $2.73 on roughly $2.59 billion in revenue.
The company blamed its poor performance on a substantial adjustment in the depreciation rate of its vehicles -- along with low rental volume -- in a statement.
Making matters worse, Hertz slashed its full-year earnings forecast to a range between 51 cents and 88 cents per share from $2.75 to $3.50.
Hertz said it cut its earnings outlook due to slower-than-expected cost reduction efforts and the potential for another depreciation rate adjustment.
"We are making progress in foundational aspects of our long-term business improvement plan, implementing new systems, improving customer service levels and launching new products," Hertz CEO John Tague said in the statement. "However, our near-term financial performance continues to be uneven."
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate HERTZ GLOBAL HOLDINGS INC as a Sell with a ratings score of D+. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income, generally high debt management risk, weak operating cash flow and feeble growth in its earnings per share.