Avis Budget Group stock falls as Q3 earnings miss estimates

PARSIPPANY, N.J. - Avis Budget Group, Inc. (NASDAQ:CAR ) reported third quarter earnings that fell short of analyst expectations, sending shares down 3.5% in after-hours trading.

The car rental company posted adjusted earnings per share of $6.65, missing the analyst consensus of $8.42 by $1.77. Revenue for the quarter came in at $3.48 billion, below estimates of $3.55 billion and down 0.6% YoY.

Despite the earnings miss, Avis Budget Group maintained a focus on pricing and fleet management. CEO Joe Ferraro stated, "We maintained a strong focus on pricing throughout the quarter, prioritizing higher margin business which allowed us to keep our revenue per day stable with the Americas nearly flat."

The company reported Adjusted EBITDA of $503 million for the quarter. In the Americas segment, Adjusted EBITDA was $384 million, driven by improved vehicle utilization but offset by higher fleet costs compared to the same period last year. The International segment saw Adjusted EBITDA of $139 million, benefiting from a 5% increase in rental days and improved vehicle utilization.

Avis Budget Group's liquidity position, including committed and uncommitted facilities, stood at over $1.2 billion at quarter-end. The company repurchased approximately 526,000 shares of common stock for nearly $43 million through October 30th.

Looking ahead, Ferraro noted, "The holidays look strong, and we believe we are well positioned to capitalize on this demand." However, the company did not provide specific guidance for the upcoming quarter or fiscal year.

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Source: Investing.com