Hertz Global Holdings Inc. shares fell after the car rental company’s latest earnings showed that falling used-car prices are starting to hurt profits, Bloomberg News reported. Hertz posted third-quarter adjusted earnings of $1.08 a share, slightly above a consensus estimate of analysts for $1.05 a share, but still down from $1.20 in the same period a year ago. One of the chief culprits was rising depreciation costs for the cars in its fleet. Rental-car companies have enjoyed a sustained period of record used-car prices that reduce costs by minimizing depreciation and also brought in fat profits at auction. That started changing earlier this year and the bonanza may well be over. “Depreciation is going to go up because of the net effect of used-car prices coming down,” Hertz Chief Executive Officer Stephen Scherr said in an interview. “But utilization is remaining high across the industry and Hertz. We’re seeing undeniable strength.” The rental business has been strong as travel has bounced back in both domestic and international markets, he said. The company is renting out 80% of its cars, which is on par with the industry’s utilization before the COVID-19 pandemic.
