(Adds details, share movement)

Feb 1 (Reuters) - Car rental company Dollar Thrifty Automotive Group Inc (DTG.N: Quote, Profile, Research) slashed its 2007 profit outlook by nearly half, citing weaker consumer demand during the holiday season and excess industry capacity among other reasons, sending shares down 16 percent.

The company, which lowered its full year forecast for the third time, said it now expects a profit of 90 cents to 95 cents a share, excluding items, down from its previous forecast of $1.75 to $1.85 a share.

Analysts on average were expecting the company, which rents cars under the Dollar Rent A Car and Thrifty Car Rental brands, to earn $1.85 a share, excluding exceptional items, according to Reuters Estimates.

The company expects 2008 profit, excluding items, of $1 to $1.50 a share. Analysts on average were expecting earnings of $2.55 a share.

Shares of the company fell to $21.85 in trading after hours, after closing at $26.02 on Friday on the New York Stock Exchange. (Reporting by Swagata Gupta in Bangalore; Editing by Anupama Dwivedi) ((swagata.gupta@reuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: swagata.gupta.reuters.com@reuters.net))