Avis Budget Group (NASDAQ:CAR) shares declined 15% on Wednesday after the car rental firm posted second-quarter earnings that fell significantly short of analyst expectations, even as revenue came in ahead of forecasts.
The company reported earnings per share of $0.10 for the quarter, well below the $2.21 projected by analysts. Revenue totaled $3.04 billion, slightly above the $2.99 billion consensus estimate.
Net income for the quarter stood at $5 million, with Adjusted EBITDA reaching $277 million. The Americas segment delivered Adjusted EBITDA of $220 million, up from $186 million a year ago, supported by lower fleet costs and improved vehicle utilization.
In the International segment, Adjusted EBITDA climbed to $82 million from $48 million, aided by stronger pricing, reduced fleet costs, and improved vehicle use, though partially offset by a drop in rental days.
Avis also launched Avis First, a premium service offering curbside pick-up and drop-off with a dedicated concierge. In addition, the company announced a partnership with Waymo to introduce autonomous ride-hailing in Dallas, Texas.
