Avis Budget Q3 revenue slightly misses

Avis Budget

Tue 21:12

Overview
US car rental provider's Q3 revenue declined 2% and slightly missed analyst expectations
Q3 adjusted EBITDA fell 8% and missed analyst expectations
Company achieved record Americas fleet utilization despite softer travel demand

Outlook
Company did not provide specific financial guidance for the current or future periods in its press release

Result Drivers
FLEET UTILIZATION - Co reported record Americas fleet utilization, with Q3 utilization at 74.1%, up 2.8 percentage points year-over-year, despite softer travel demand
REVENUE PER DAY - Revenue per day rose slightly year-over-year, marking the third consecutive quarter of positive growth, according to co
FLEET COSTS - Per-unit fleet costs increased 4% year-over-year but remained within company expectations

Company press release: ID:nGNX3ZV9lV

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
$3.40 bln
$3.42 bln (6 Analysts)
Q3 EPS
 
$5.15
 
Q3 Net Income
 
$199 mln
 
Q3 Adjusted EBITDA
Miss
$513 mln
$557.11 mln (6 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."
Wall Street's median 12-month price target for Avis Budget Group Inc is $122.50, about 9.8% above its November 2 closing price of $111.52
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads
Nov 2 - Marriott lifts annual room revenue growth forecast on resilient travel demand
Nov 2 - Choice Hotels Q3 revenue and adjusted EPS beat estimates, raises FY RevPAR outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)