Avis Budget Group, Inc. (NYSE: CAR)
Shares of Avis Budget Group dropped by 11% on Thursday despite posting better than expected results. The company posted earnings per share and revenue which beat the consensus estimate of analysts.
Revenue had also increased by 7% during the quarter. The company reaffirmed its projected full-year 2018 results. Avis budget group experienced a 5% increase in total rental days and a 3% benefit from currency exchange which led to the revenue growth.
CAR Earnings & Outlook
During the quarter, Avis Budget Group reported $-0.74 earnings per Share compared to $0.45 earnings per share in the year-ago period. The $0.74 loss per share beat the consensus estimate of $-1.04 earnings per share. The company reported revenue of $1.97 billion which beat the consensus estimate by $50.0 million.
Revenue had increased by 7% to $1.97 billion from $1.839 billion in the same period last year. The current Wall Street estimate for the second quarter is $0.55 earnings per share. Avis Budget Group estimates revenue of between $9.20 billion to $9.45 billion and between $2.90 to $3.75 earnings per share for the full year.
I like this one more than what I am seeing on the penny stock watch list so we will definitely keep it on our radar at the open.
Avis Budget Group, Inc. CEO Comments
Avis Chief Executive Officer Larry De Shon said that the company’s fiscal year 2018 has begun on a very positive note with improved utilization, strong demand, lower per-unit fleet costs and underlying pricing in the Americas. “With both pricing and fleet costs in the Americas having stabilized, the benefits of our strategic initiatives were clearly evident this quarter with year-over-year profitability improving significantly,” Shon said.
Avis Budget Group, Inc. Company Profile
Avis Budget Group Inc. provides vehicle sharing and car rental services to consumers and businesses worldwide. The company has three brands which include Zipcar, Budget and Avis. Zipcar is a car sharing service while Budget and Avis are rental car suppliers.
Avis Budget Group also owns Payless, a car rental brand; Maggiore, a vehicle rental brand in Italy, France Cars, which offers light commercial vehicle fleets in France and Apex which is car rental brand in Australia and New Zealand.
The Company operates through two segments; Americas and International. The Americas segment engages in provision and licensing of the Company’s brands to third parties for vehicle rentals and ancillary services and products in North America, Central America, the Caribbean and South America.
The International segment engages in provision and licensing of the Company’s brands to third parties for vehicle rentals and ancillary services and products in Europe, New Zealand, Australia, Africa, the Middle East and Asia. The company was incorporated in 1974 and is based in Parsippany, New Jersey. –CNN