Avis Budget Q2 revenue misses estimates amid booking trends shift
CAR•Outlook and analyst context
The company did not provide specific guidance for current or future quarters.
The current average analyst rating on the shares is "hold," with no "strong buy" or "buy" ratings, 8 "hold" ratings and 1 "sell" or "strong sell." Wall Street's median 12-month price target for Avis Budget Group Inc is $148.00, about 9.6% below its July 27 closing price of $163.68.
Quarterly results miss on revenue
U.S. car rental firm Avis Budget Group said second-quarter revenue fell 1% year over year, missing analyst expectations.
Adjusted EBITDA for the quarter rose 3% and beat analyst expectations. The company reported second-quarter EPS of $0.98 and net income attributable to Avis Budget of $35 million.
Fleet management helped offset booking trends shift
The company said it quickly resized its fleet as booking trends shifted to protect utilization and returns, according to CEO Brian Choi.
Vehicle utilization in the Americas reached a second-quarter record high, supported by operational adjustments. Per-unit fleet costs fell 4% year over year, helping offset revenue pressures.
