NEW YORK—Shares of rental car companies fell Thursday as analysts and investors continued to worry about the effects of the slumping U.S. automotive industry, high gas prices and a drop in air travel.
Dollar Thrifty Automotive Group Inc. posted the biggest losses, falling 34 cents, or 9.7 percent, to close at $3.18 on a shortened trading day, after dropping to $2.93 earlier and easily passing its previous 52-week low set the day before of $3.43.
On Tuesday, Dollar Thrifty said that it expects to miss its previous full-year profit estimate of $1 to $1.50 per share, prompting analysts to cut their ratings and price targets for the company.
Dollar Thrifty shares have dropped about 63 percent since the company's profit warning and are down about 85 percent so far this year.
Meanwhile, Avis Budget Group Inc. said Wednesday that it expects its second-quarter and full-year earnings to fall below year-ago results, blaming rising fuel costs and slowing U.S. commercial air travel.
On Thursday, Avis shares fell 36 cents, or 6.3 percent, to $5.33 after dropping to $5.27 earlier in the session.
Christopher Agnew of Goldman Sachs cut his earnings estimates but backed his "Buy" rating for Avis, saying that the effects of a tough economic environment are now reflected in the lower estimates.
"We are expecting minus 1 percent pricing for the full year despite industry expectations for stronger pricing in the third quarter as leisure travel volumes build in July and August," Agnew wrote in a note to investors.
Agnew also cut his earnings estimates, but backed his "Buy" rating, for Hertz Global Holdings Inc.
"We believe the company's broad-based revenues, its diverse fleet and, most importantly, its cost initiatives provide Hertz with significantly more durable earnings than its peers and than the market is discounting," Agnew said.
Hertz shares fell 20 cents, or 2.8 percent, to $6.90.
