Avis Budget Stock Drops After Missing Earnings and Revenue Forecasts
Avis Budget Group (NASDAQ: CAR) stock fell nearly 9% on Wednesday after the company reported second-quarter earnings that significantly missed analyst expectations. Avis earned $0.98 per share, far below the anticipated $2.07, while revenue came in at $3 billion versus a forecast of $3.1 billion. Despite improvements such as higher vehicle utilization and lower fleet costs, these gains were overshadowed by weaker-than-expected financial performance. The company noted that GAAP earnings had increased nearly tenfold compared to the same period last year but still faced an overall 1% revenue decline on a yearly basis. Avis did not provide guidance for future quarters in its report and is currently resizing its fleet to better align with customer demand, as highlighted by CEO Brian Choi. Analysts expect only modest improvements ahead, including less than 2% growth in Q3 sales year-over-year and minimal profit increases. While full-year earnings are projected to turn from a loss in 2025 into a $3.41 per share profit in 2026, the slow pace of recovery has disappointed investors.
Tickers: $CAR
Topics: Avis Budget Q2 earnings report revenue decline stock price drop