Avis Budget Group shares tumbled 12.79% in post-market trading, following the release of its second-quarter financial results that significantly missed Wall Street expectations.

The car rental company reported adjusted earnings of $0.98 per share, far below the analyst consensus estimate of $1.80 per share. Quarterly revenue came in at $2.998 billion, missing the forecast of $3.101 billion and declining from $3.039 billion in the same period a year earlier. While adjusted EBITDA of $286 million exceeded the expected $255.5 million, the top-and-bottom-line misses weighed heavily on investor sentiment.

The revenue shortfall was attributed to shifting booking trends, which prompted the company to quickly resize its fleet to protect utilization and returns. Avis reported that both revenue and rental days in the Americas, its largest market, fell by 2% due to weakened demand. CEO Brian Choi stated, "As booking trends shifted, we moved quickly to resize fleet, protect utilization and returns, and deliver Adjusted EBITDA in line with our initial expectations."