Avis Budget Group IncCAR
▼ NegativeCapitalrelevance
Record profit and beat expectations, but lack of forward guidance caused stock to drop despite strong fundamentals.
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Avis Budget Group IncAvis Budget Group shares dropped 4.9% after the company reported record quarterly results but issued no forward guidance. The car rental firm posted sales of $3.2 billion, up 37% year over year, and earnings of $15.94 per share, far exceeding the $11.48 analysts expected. CEO Joe Ferraro attributed the performance to enhanced revenue generation, diligent fleet management, and stringent cost control, noting strength in both U.S. and international operations. Despite the record profit and adjusted free cash flow of $1.1 billion, the lack of guidance appeared to weigh on investor sentiment, though the stock trades at just 4.5 times current-year earnings estimates.
Avis Budget Group IncRecord profit and beat expectations, but lack of forward guidance caused stock to drop despite strong fundamentals.