Hertz (HTZ) to Restate Results As Accounting Issues Wider Than Thought

Hertz Global Holdings (HTZ) shares declined more than 9% in regular session Friday after the company said in a regulatory filing that it would have to restate and correct financial results for the past twelve quarters. Citing the results of an internal audit, Hertz said its fiscal 2011 earnings  “should no longer be relied upon and [it] must restate them.”

Hertz also said it needs to make further adjustments to the 2012 and 2013 financial statements to further reflect the errors in 2011, and warned its delayed 1Q earnings results, scheduled to be released on June 9th, will likely come in below estimates due to costs associated with the accounting review.

“It will take time to complete this process, and previously reported information is likely to change, although the actual size of any adjustments has yet to be determined and some adjustments may offset others,” the company said in its filing with the SEC.

Shares in the $12.4 billion rental car company fell 9.5 percent on Friday to close at $27.32. They’re now up 8.40% on a y/y basis and off about 3 points from their June 5, $30.52 year high. The t12 revenue at HTZ is $10.77 billion. Hertz’s price-to-earnings ratio is 0.94.

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