Rental car operator Hertz reports bigger-than-expected loss

“We will have elevated investments throughout the year as we implement several, major technology conversions,” Chief Executive Officer Kathryn Marinello said in a statement.

“By 2019, we should begin to evolve toward a more competitive earnings profile.”

Hertz has been reducing the size of its rental fleet and investing more in marketing campaigns and technology upgrades of its app amid pressure from industry over-capacity and pricing.

The rise of car-sharing companies has also intensified competition for Hertz.

Hertz benefited from a one-time gain of $679 million due to changes in the U.S. tax law and reported net income from continuing operations of $616 million, or $7.42 per share, in the quarter ended Dec. 31, compared with a loss of $438 million, or $5.28 per share, a year earlier.

On an adjusted basis, Hertz reported a loss of 77 cents per share, above the average analyst estimate of 60 cents, according to Thomson Reuters I/B/E/S. Total revenue rose to $2.09 billion from $2.01 billion, beating the analysts’ estimates of $2.06 billion.