01:12 PM EST, 11/12/2024 (MT Newswires) -- Hertz Global ( HTZ ) reported a bigger decline in third-quarter revenue than expected on Tuesday while swinging to a per-share loss and recording a $1 billion write-down amid lower fleet residual values.

The car rental company's revenue dipped to $2.58 billion for the three months ended Sept. 30 from $2.7 billion a year ago and missed the $2.68 billion average analyst estimate on Capital IQ. Revenue per day, or RPD, dipped 1%.

"Lower market rates were supported by a deliberate strategy to drive better RPD mix," Chief Financial Officer Scott Haralson told analysts on a conference call, according to a Capital IQ transcript.

Hertz swung to an adjusted loss per share of $0.68 from a profit of $0.70 a year ago, compared with the Street's view for a $0.47 loss. The company's GAAP results included a $1 billion impairment charge that reflected lower fleet residual values and the timing of an accelerated fleet rotation initiative.

Hertz announced in January that it planned to sell 20,000 electric vehicles, more than two years after announcing a deal to buy 100,000 cars from Tesla (TSLA). In April, it said it would sell another 10,000 EVs.

EVs reflect less than 10% of the current fleet, Haralson said on the call. "The remaining EVs are strategically placed in our fleet, so we're happy with those levels," he added.

The company plans to operate with fewer vehicles overall, he told analysts.

"Reducing our fleet 1% while producing the same number of transaction days could reduce our expenses by

more than $30 million per year and reduce our cash outlay by more than $20 million and reduce our debt by more than $100 million," Haralson said.

Price: 3.32, Change: -0.06, Percent Change: -1.63