Hertz is cutting its revenue expectations for the year, saying that the rental car market is suffering from excess capacity.
CEO John Tague says that overflow will likely moderate heading into the peak summer season.
Hertz Global Holdings Inc. now expects full-year revenue to range from flat to dropping by 1.5 percent. The company had previously projected growth between 1.5 percent and 2.5 percent.
The company, based in Estero, Florida, expects revenue in the first quarter of between 2.5 percent and 3.5 percent.
Shares tumbled 9 percent before the opening bell Monday.
Hertz’ gloomy outlook dragged down rival Avis in premarket trading as well. Its shares fell 5 percent.