Avis Budget Misses Q2 Estimates by Wide Margin, Stock Tumbles 12.5%
CAR sits 71% above its 52-week low of $85.96.
Summary
Avis Budget reported Q2 GAAP EPS of $0.98, nearly half the $1.92 consensus, on revenue of $2.998B vs. $3.097B expected. The miss was driven by shifting booking trends that forced rapid fleet resizing to protect utilization and returns. Adjusted EBITDA of $286M was in line with expectations, as disclosed in the 8-K filed earlier today, but the magnitude of the top- and bottom-line shortfall caught the market off guard. Shares plunged 12.5% after hours to $145.50, erasing the regular-session gain. The company has been actively managing its capital structure with recent upsized fleet financing and a $650M litigation settlement, but this operational stumble raises questions about demand resilience heading into the second half.
At the time of this announcement, CAR was trading at $147.00 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $5.9B. The 52-week trading range was $85.96 to $847.70. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.