8-3-2012- Zipcar (NASDAQ:ZIP) stock plummeting in today's trading session after posting a bad second quarter earnings report and slashing its full year guidance. The car sharing company reported a GAAP loss of $0.01, lower than the break-even analysts were expecting. Revenue for the quarter did rise 15% from a year ago to $70.8 million but was also below the $73.1 million forecast.
What has worried investors this morning though is its full year profit cut. Zipcar said it now sees GAAP net income in the range of break even to $4 million, lower than the $3 million to $7 million the company was expecting before. CEO Scott Griffith said they brought in fewer members than they expected and faced tough economic conditions in their UK business.
As said before, Zipcar shares are falling fast in today's trading because of this news. Currently, the stock is down over 34%, losing over $3.50 in today's trading.