Avis Budget Group reported second-quarter revenue of $3 billion, down 1% and below analyst estimates of $3.11 billion, while adjusted EBITDA rose 3% to $286 million and GAAP earnings per share jumped from $0.10 to $0.98, still missing the $1.91 consensus. Vehicle utilization reached a record second-quarter high of 72.6% overall and 73.2% in the Americas, and per-unit fleet costs fell 4% to $290 per month, reflecting improved efficiency under new CEO Brian Choi. The company also launched an autonomous vehicle partnership with Waymo, completing thousands of trips in its first month. Despite the operational progress, management noted weakening booking trends and trimmed its fleet, contributing to a 13% after-hours stock decline. Avis is outperforming rival Hertz on the balance sheet and in operational efficiency, but the lack of guidance and a sluggish travel market leave the turnaround story still in its early stages.
Avis Budget Group IncWeakening booking trends and trimmed fleet indicate lower end-customer demand.
Hertz Global Holdings IncAvis outperforming Hertz on balance sheet and operational efficiency, implying Hertz is lagging.
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