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NEW YORK - Avis Budget Group (NASDAQ:CAR) reported a significant fourth-quarter loss and missed analyst expectations for both earnings and revenue, while also announcing a planned CEO transition. The car rental company’s stock fell 1.6% following the news.
Avis Budget Group posted a fourth-quarter net loss of nearly $2 billion, with an adjusted loss per share of $55.66, far below the analyst consensus estimate of -$1.02. Revenue for the quarter came in at $2.71 billion, slightly missing the $2.73 billion consensus estimate but representing a YoY increase.
The company attributed the substantial loss to a strategic decision to accelerate fleet rotations in its Americas segment, resulting in a one-time non-cash impairment of $2.3 billion and other non-cash related charges of $180 million.
Despite the disappointing results, CEO Joe Ferraro expressed optimism about travel demand, stating, "Travel demand is strong, and our brands are well-positioned to take advantage of this activity." He added, "I am confident in our ability to generate no less than $1 billion of Adjusted EBITDA in 2025."
Avis Budget Group also announced that Ferraro will transition from CEO to Board Advisor, effective June 30, 2025, after a 45-year career with the company. Brian Choi, the current Chief Transformation Officer, will take over as CEO on July 1, 2025.
For the full year 2024, Avis Budget Group reported revenues of $11.8 billion and a net loss of $1.8 billion. The company’s liquidity position at the end of the quarter stood at approximately $1.1 billion, with an additional $2.8 billion of fleet funding capacity.
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