Why Shares of Avis Budget Group Declined 15% Despite Topping Earnings Estimates
Shares of Avis Budget Group, Inc. (NASDAQ: CAR), a global leader in mobility solutions including car rentals, as well as car-sharing networks through its Zipcar brand, declined 15% Tuesday by 4 p.m. EST after the company beat earnings forecasts but reduced guidance.
Digging into the numbers, Avis reported third-quarter revenue of $2.75 billion, a modest 4% increase over the prior year but still a record. However, investors also have to consider that that 4% gain was partly driven by a 5% increase in overall rental days. On the bottom line, the company reported adjusted earnings per share of $3.10, which checked in ahead of analysts' estimates calling for $2.97 per share.
"We had a record third quarter with both pricing and utilization improving in the Americas, strong volume growth partially offset by lower pricing in our International segment, and a relentless focus on cost reduction globally," said Larry De Shon, Avis Budget Group president and CEO, in a press release.
Source: Fool.com
Avis Budget Group Stock
With 0 Sell predictions and 1 Buy predictions the community sentiment towards the Avis Budget Group stock is not clear.
With a target price of 128 € there is a positive potential of 32.37% for Avis Budget Group compared to the current price of 96.7 €.
