Hertz investors will have to be patient.
"It's going to be another solid six quarters of hard work and investments," said Marinello. She said the company is now playing catch-up from multiple years of neglect, such as not updating the fleet or getting the right cars in the right place. "There nothing structural that Hertz can't return to."
Hertz reported a 2% decline in second-quarter total revenue from this quarter in 2016, or $2.2 billion, on Tuesday.
CFO Tom Kennedy said during the call that August bookings were now at 55% and that international sales are solid, despite terrorist attacks abroad.
Hertz shares rose slightly in pre-market trading.
The car rental company recorded a net loss from continuing operations of $158 million, or $1.90 a share, inclusive of $54 million in impairment charges, compared with a net loss the same time last year of $28 million, or 33 cents a share. The company reported, on an adjusted basis, a net loss for this year's second quarter of $52 million, or 63 cents a share, compared with $35 million, or 41 cents a share, for the same period last year.
"We have made significant progress in the first half of the year, executing on our operating turnaround plan," said Marinelloin a press release. "Of course, the hard work always comes before the pay off as reflected in our second quarter results, where increased spending to fix areas of weakness and invest in areas of opportunity were exacerbated by a challenging vehicle residual environment in the U.S."
Hertz also reported that total U.S. RAC revenues were $1.5 billion in the second quarter of 2017, down 4%, compared with last year's results, and also that transaction days fell by 3% year over year when measured against last year's second quarter, which has been driven by replacement rentals from unusually high customer vehicle recall activity. Pricing, gauged by Total RPD, was down by 2% in the quarter, driven by a shifting customer mix and softer ancillary revenues.
Hertz shares set their all-time intraday high of $125.32 during the week of Aug. 22, 2014. This was when ride-sharing companies such as Uber and Lyft began to gain market share as consumers looked to save a buck by avoiding the need to rent a car. More recently, weak used car pricing put downward pressure on the value of cars in the rental fleets. These competitive pressures contributed to Hertz crash of 93%, to its multi-year low of $8.52 set on June 21.
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