Hertz Global Holdings (HTZ) shares plummeted Tuesday, a day after the rental car company reported weaker-than-expected revenue and a larger loss than projected for the first quarter.

Hertz reported an adjusted loss of $1.12 per share on revenue that fell 13% year-ove🅷r-year to $1.81 billion. Analysts surveyed by Visible Alpha expected an adjusted loss of $0.95 on revenue of $2.02 billion.

Revenue Decline 'Driven Primarily by Reduced Fleet Capacity'

The firm said its revenue decline was "driven primarily by reduced fleet capacity," which fell 8%.

"Just a year ago, we were managing through an aging fleet and pressure on residual values," CEO Gil West said. "Today, thanks to swift and disciplined action, we've rotated into a newer, more efficient fleet that's resilient, cost-effective, and aligned with a rising residual environment."

Hertz said more than 70% of its U.S. rental fleet is no more than a year old, and that it is "focused on fundamentally improving the durability and margins of the business" the rest of this year and into 2026.

Hertz shares sank 17% shortly after markets opened. They entered the day up 90% so far this year, aided by last month's disclosure by billionaire investor Bill Ackman's Pershing Square 澳洲幸运5官方开奖结果体彩网:that it had taken a 4% stake in the company.

UPDATE—This article has been updated with the latest share price information.