Sector Snap: Rental Cars

After the exclusion of fair value derivatives, Dollar Thrifty said it posted an adjusted loss of 23 cents per share, while analysts expected a loss of 41 cents per share.

Its $445.7 million in revenue fell short of average analysts' predictions of $448.4 million.

Dollar Thrifty attributed the results to lower revenue per day and a 28 percent increase in vehicle depreciation costs related to the continued weak used car market.

Christopher Agnew of Goldman Sachs attributed Dollar Thrifty's steep increase in vehicle depreciation costs to its large proportion of Chrysler LLC vehicles. He added that Dollar Thrifty's competitors aren't as exposed to Chrysler and as a result, shouldn't be affected the same way.

"We believe that the challenging environment Dollar Thrifty is facing is much more due to its vehicle mix and the credit markets," Agnew wrote in a note to investors.

"Both these factors are causing Dollar Thrifty to reduce its fleet more than it would like into the peak summer leisure travel period. In our view, this will mean Dollar Thrifty is ceding some share."

Dollar Thrifty also on Tuesday withdrew its previous fiscal year profit guidance, citing uncertain economic conditions.

In morning trading, Dollar Thrifty rose 15 cents, or 4.7 percent, to $3.34 after peaking at $3.55 earlier in the session. Over the past 52 weeks, Dollar Thrifty shares have traded between $2.31 and $37.14.

Elsewhere in the sector, Hertz Global Holdings Inc., which is scheduled to report quarterly results on Thursday, rose 35 cents, or 4.2 percent, to $8.69 after peaking at $8.83 earlier.