NEW YORK, NY / ACCESSWIRE / August 10, 2017 / Hertz and Avis were big winners in the rental car arena on Wednesday. Hertz's shares especially as they closed up nearly 23% yesterday after releasing an encouraging outlook for the third quarter. Despite both Hertz and Avis missing estimates in their earnings reports, a report surfaced this week that Uber would be selling its leasing car sector in the U.S. by the end of the year, which according to an analyst could allow rental car companies to turn their vehicle fleets into ride hailing services.

RDI Initiates Coverage on:

Hertz Global Holdings, Inc.
https://ub.rdinvesting.com/news/?ticker=HTZ

Avis Budget Group, Inc.
https://ub.rdinvesting.com/news/?ticker=CAR

Hertz Global Holdings, Inc.'s shares galloped ahead on Wednesday and closed the day up 23.04% on nearly 29 million shares traded. The big gain came after the company released its second quarter financial results. For the period, a loss of $0.63 a share missed the $0.12 loss per share that the Street expected. Revenue at $2.22 billion was also below the $2.23 billion expected. So why the gain then? Perhaps the company's outlook had traders feeling optimistic. CEO Kathryn Marinello said the company has made "significant progress" during the first half of the year in executing on its turnaround plan. She also noted that the company is "encouraged by preliminary third quarter 2017 total revenue per day trends." The big move could also be because Uber announced this week that it plans to consolidate or perhaps sell, its U.S. car leasing sector by the end of 2017. Analysts last week, such as Samik Chatterjee from J.P. Morgan hinted that this could mean rental driving companies may be able to change their vehicle fleets into ride hailing services. Chatterjee noted, "With existing scale of fleet operations, rental car companies strike us as natural owners of car sharing solutions, with new entrants likely struggling to achieve threshold volumes in a fragmented market to reach profitability. Moreover, we believe the advent of fully autonomous driving will level the playing field for rental car companies and ride share solutions, making them one and the same, additionally necessitating investments in fleet management services by ride share companies."

Access RDI's Hertz Global Holdings, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=HTZ

Avis Budget Group, Inc.'s shares closed up 7.48% on Wednesday on roughly 7.6 million shares traded, which was about double the amount of volume the stock usually sees on average. The gains were a big change compared to Monday's loss of 10% in after-hours trading when the company reported dismal financial results for the last quarter. The company earned $3 million, or 4 cents a share. This is compared to making $36 million, or 38 cents a share, in the year ago quarter. Revenue was unchanged at $2.2 billion but was below the $2.3 billion that analysts had expected. Adjusted for one-time items, Avis reported 30 cents a share, which was also below the 52 cents that Wall Street expected and lower than the 63 cents Avis saw last year. Looking ahead, the company expects sales for the full year 2017 to be in the range of $8.8 billion and $9 billion with EPS of $2.40 to $2.85. Wall Street was expecting $8.8 billion in sales and EPS of $2.78.

Access RDI's Avis Budget Group, Inc. Research Report at:
https://ub.rdinvesting.com/news/?ticker=CAR

Our Actionable Research on Hertz Global Holdings, Inc. (NYSE: HTZ) and Avis Budget Group, Inc. (NASDAQ: CAR) can be downloaded free of charge at Research Driven Investing.

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