Avis Budget Group (NASDAQ:CAR) Releases Quarterly Earnings Results

Key Points

• Avis Budget Group reported earnings of $0.10 EPS for the quarter, significantly missing analysts' expectations of $2.02 EPS by $1.92.
• The company experienced a negative net margin of 18.96% and a negative return on equity of 14.74%.
• Despite the earnings miss, Avis Budget Group received mixed ratings from analysts, with upgrades from some firms and a consensus rating of "Hold".

Avis Budget Group (NASDAQ:CAR - Get Free Report) released its quarterly earnings results on Tuesday. The business services provider reported $0.10 earnings per share for the quarter, missing the consensus estimate of $2.02 by ($1.92), Zacks reports. Avis Budget Group had a negative net margin of 19.06% and a negative return on equity of 14.74%. The company had revenue of $3.04 billion during the quarter, compared to analyst estimates of $3.02 billion. During the same quarter last year, the company earned $0.41 EPS. The firm's quarterly revenue was down .3% compared to the same quarter last year.

Avis Budget Group Trading Down 3.6%

Shares of Avis Budget Group stock traded down $6.17 on Friday, reaching $164.07. 1,787,688 shares of the company were exchanged, compared to its average volume of 1,115,597. The company has a market capitalization of $5.77 billion, a price-to-earnings ratio of -2.59 and a beta of 2.19. Avis Budget Group has a one year low of $54.03 and a one year high of $212.81. The company has a 50-day moving average of $159.33 and a 200 day moving average of $109.84.

Analyst Ratings Changes

Several analysts have issued reports on CAR shares. Wall Street Zen raised Avis Budget Group from a "sell" rating to a "hold" rating in a research note on Saturday, May 3rd. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $155.00 target price on shares of Avis Budget Group in a research report on Thursday. The Goldman Sachs Group cut Avis Budget Group from a "neutral" rating to a "sell" rating and boosted their target price for the company from $87.00 to $105.00 in a research note on Friday. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $196.00 price target (up from $130.00) on shares of Avis Budget Group in a research note on Thursday, July 10th. One investment analyst has rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $131.20.

Hedge Funds Weigh In On Avis Budget Group

A number of institutional investors have recently added to or reduced their stakes in CAR. Empowered Funds LLC lifted its stake in Avis Budget Group by 10.1% in the first quarter. Empowered Funds LLC now owns 3,749 shares of the business services provider's stock valued at $285,000 after acquiring an additional 343 shares during the last quarter. Royal Bank of Canada lifted its stake in Avis Budget Group by 414.0% in the 1st quarter. Royal Bank of Canada now owns 17,860 shares of the business services provider's stock valued at $1,355,000 after purchasing an additional 14,385 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Avis Budget Group by 16.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 65,023 shares of the business services provider's stock valued at $4,935,000 after purchasing an additional 9,246 shares during the last quarter. 96.35% of the stock is currently owned by institutional investors and hedge funds.

About Avis Budget Group

Avis Budget Group, Inc engages in the provision of vehicle sharing and rental services. It operates through the following segments: Americas, International, and Corporate and Other. The Americas segment includes the vehicle rental and car sharing operations in North America, South America, Central America, and the Caribbean.