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Investing.com -- Avis Budget Group (NASDAQ:CAR) stock fell 4.4% after the car rental company reported second-quarter earnings that missed analyst estimates, despite revenue coming in above expectations.
The company reported second-quarter earnings per share of $0.10, significantly below the analyst estimate of $2.21. Revenue for the quarter came in at $3.04 billion, slightly above the consensus estimate of $2.99 billion.
Avis Budget Group ended the quarter with net income of $5 million and Adjusted EBITDA of $277 million. The company’s Americas segment posted Adjusted EBITDA of $220 million compared to $186 million in the same period last year, driven by lower fleet costs and increased vehicle utilization.
In the International segment, Adjusted EBITDA reached $82 million compared to $48 million in the same period last year, attributed to stronger pricing, decreased fleet costs, and improved vehicle utilization, partially offset by a decrease in rental days.
The company recently launched Avis First, a premium product offering that provides curbside pick-up and drop-off services with a dedicated concierge. Additionally, Avis announced a strategic partnership with Waymo to launch fully autonomous ride-hailing operations in Dallas, Texas.
"At Avis Budget Group, we’re building to scale where we hold structural advantages. With Avis First, we’ve created the category of first-class car rental; designed through product innovation and delivered with operational excellence. With our Waymo partnership, we’re stepping into the autonomous future as a critical enabler of next-generation fleet management," said Brian Choi, Avis Budget Group Chief Executive Officer.
The company reported that its liquidity position at the end of the quarter was nearly $950 million, with an additional $1.7 billion of fleet funding capacity.
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