Earnings Watch: Hertz stock falls after third-quarter revenue rises 3% to $2.84 billion

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Hertz Global Holdings Inc. stock fell more than 2% in the extended session Monday after the company reported a 3% rise in sales to $2.84 billion.

Hertz HTZ, +2.84%  reported third-quarter net income of $169 million, which amounts to $1.26 a share, versus $141 million, or $1.47 a share, in the year-ago period. Adjusted earnings were $1.60 a share.

Revenue rose 3% to $2.84 billion from $2.76 billion in the year-ago quarter.

“Our strong third-quarter results continue to reflect the successful execution of our strategies, operational efficiencies and early returns on foundational and growth investments,” Hertz Chief Executive Kathryn Marinello said in a statement.

Analysts surveyed by FactSet had estimated adjusted earnings of $1.50 a share on sales of $2.84 billion. FactSet polled four analysts for the consensus revenue figure. In the fourth quarter, analysts model adjusted losses of 32 cents a share on sales of $2.35 billion.

Hertz closed a rights offering in July, which diluted the company’s stock, affecting the earnings per share, the company said.

Hertz stock has gained 18.3% this year, with the S&P 500 index SPX, +0.37%  rising 22%.