Avis Budget Group, Inc. (NYSE:CAR) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.78%.
Avis Budget Group, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 46.81% to $0.5 in the quarter versus EPS of $0.94 in the year-earlier quarter.
Revenue: Rose 7.29% to $2 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avis Budget Group, Inc. reported adjusted EPS income of $0.5 per share. By that measure, the company missed the mean analyst estimate of $0.5. It missed the average revenue estimate of $2.01 billion.
Quoting Management: “Our second quarter results reflected volume growth in all regions and increased pricing in North America, offset by the significant year-over-year increase in North American fleet costs occasioned by the significant car-sale gains and depreciation adjustments recorded in the comparable quarter of last year,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “Going forward, we expect volume and pricing trends in North America to remain favorable and fleet costs to stabilize. In addition, summer trends in Europe are also favorable, while the integration of Zipcar continues to progress as planned, with both cost savings and incremental revenue opportunities being realized.”
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