The new $1 billion stock repurchase program replaces a $300 million buyback announced last year. Hertz used about $87.5 million under that buyback.
Its stock rose 34 cents, or 1.3 percent to $27.56 in afternoon trading. Its shares are up almost 30 percent over the past year.
The company also reported its fourth-quarter and full-year financial results on Tuesday. For the three months ended Dec. 31, Hertz lost $600,000, or breakeven per share results, versus a loss of$36.8 million, or 9 cents per share, a year ago. Excluding certain items, earnings were 26 cents per share. Analysts polled by FactSet expected adjusted earnings of 32 cents per share.
Revenue rose 10 percent to $2.56 billion from $2.32 billion. Analysts expected $2.61 billion.
For the full year, Hertz earned $346.2 million, or 76 cents per share, up from $238.6 million, or 53 cents per share, a year ago. Annual revenue increased 19 percent to $10.77 billion from $9.02 billion.
Hertz foresees 2014 adjusted earnings of $1.70 to $2 per share, with revenue in a range of $11.4 billion to $11.7 billion. Wall Street anticipates earnings of $2.07 per share on revenue of $11.6 billion.