Avis Budget Group shares plummeted 12.52% in after-hours trading on Tuesday, following the release of its second-quarter financial results that fell short of Wall Street expectations.

The car rental company reported adjusted earnings of $0.98 per share, significantly below the analyst consensus estimate of $1.80, a miss of 45.56%. Quarterly revenue came in at $2.998 billion, missing the $3.101 billion estimate and declining 1.35% from $3.039 billion in the same period last year. While adjusted EBITDA of $286 million exceeded the forecast of $255.5 million, the top-and bottom-line misses weighed heavily on investor sentiment.

The revenue shortfall was attributed to a shift in booking trends, which prompted the company to quickly resize its fleet to protect utilization and returns. This proactive fleet management helped achieve record second-quarter vehicle utilization in the Americas, but it was not enough to offset the overall revenue decline.