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Hertz shares fell sharply in extended trading after the car-rental chain reported a larger-than-expected quarterly loss in the midst of turnaround efforts.

Shares in the Florida-based company tumbled more than 17 per cent in extended trading on Monday after the company reported a net loss of $223m or $2.69 a share from continuing operations, compared with a narrower loss of $52m or 61 cents a share in the year-ago period.

Adjusting for one-time items, the company’s loss of $1.61 a share was wider than Wall Street estimates of 84 cents.

Total revenues fell 3 per cent from a year ago to $1.92bn, shy of expectations for $1.95bn.

Hertz shares have declined more than 30 per cent so far this year, following a more than 60 per cent drop in 2016. The company’s results have suffered as prices of used cars have dropped, and the company’s turnround plans have included selling off its aging cars and renewing its fleet. It has also faced increasing competition from ride-share companies like Uber and Lyft.

In hopes of righting the ship, Hertz appointed Kathryn Marinello chief executive in December. She replaced John Tague who was appointed in 2014 with the backing of activist investor Carl Icahn.

“We are placing significant emphasis on fleet quality, the customer experience, brand development and systems transformation,” said Ms Marinello. “These investments are critical to rebuilding our position as a leader in the global rental car market. While our performance doesn’t yet reflect our investments and may continue to be uneven, we are seeing signs of progress.”

Copyright The Financial Times Limited 2018. All rights reserved.

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