Here’s Why Rental Car Stocks are Tanking Now

Dollar Thrifty Automotive Group, Inc. (NYSE:DTG) reported results for the third quarter, but shares of Dollar Thrifty (NYSE:DTG) traded down 2.6% despite beating estimates with strong rental revenue.

CEO Scott Thompson says that even with a headwind for pricing, the firm benefited from a favorable used vehicle market and low-cost operating structure. The company sees rental revenue increasing 1%-2% in Q4, offsetting a decline in revenue per day. The Company also reported Corporate Adjusted EBITDA for the third quarter of 2011 of $117.6 million, compared to $81.8 million in the third quarter of 2010.

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Fleet cost per vehicle was $186 per month in the third quarter of 2011, compared to $262 per month in the third quarter of 2010. Direct vehicle and operating expenses and selling, general and administrative expenses (operating expenses) totaled $262.4 million in the third quarter of 2011, compared to $263.6 million in the third quarter of 2010.

Competitors Hertz (NYSE:HTZ) and Avis Budget (NYSE:CAR) are also selling off on the news:

  • Dollar Thrifty Automotive Group Inc. (NYSE:DTG): The shares recently traded at $60.21, down $0.83, or 1.36%. Its market capitalization is $1.75 billion. They have traded in a 52-week range of $45.36 to $84.27. Volume today was 461,010 shares versus a 3-month average volume of 551,811 shares. The company’s trailing P/E is 15.36, while trailing earnings are $3.92 per share. About the company: Dollar Thrifty Automotive Group, Inc. operates Dollar and Thrifty vehicle rental systems. The Company provides its services to leisure customers, tourists, small businesses, and independent business travelers. Dollar Thrifty operates locations in the United States and Canada, as well as other countries. Get the most recent company news and stock data here >>
  • Hertz Global Holdings, Inc. (NYSE:HTZ): The shares recently traded at $11.18, down $0.42, or 3.62%. Its market capitalization is $4.66 billion. They have traded in a 52-week range of $7.80 to $17.64. Volume today was 6,896,623 shares versus a 3-month average volume of 6,102,910 shares. The company’s trailing P/E is 95.56, while trailing earnings are $0.12 per share. About the company: Hertz Global Holdings, Inc. operates car and equipment rental centers throughout the United States and Europe. Get the most recent company news and stock data here >>
  • Avis Budget Group, Inc. (NYSE:CAR): The shares recently traded at $13.49, down $0.61, or 4.33%. Its market capitalization is $1.42 billion. They have traded in a 52-week range of $8.45 to $19.49. Volume today was 3,115,595 shares versus a 3-month average volume of 2,597,560 shares. The company’s trailing P/E is 13.92, while trailing earnings are $0.97 per share. About the company: Avis Budget Group, Inc. offers automobile and truck rental services. Get the most recent company news and stock data here >>

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