Zacks Research Has Bearish Forecast for CAR Q3 Earnings

Key Points

• Zacks Research lowered its Q3 2026 EPS forecast for Avis Budget Group to $8.78 from $9.10 and maintains a “Strong Sell” rating. Its full-year 2026 EPS estimate is $1.35.
• Avis recently missed quarterly expectations, reporting $0.98 EPS versus the $2.05 consensus estimate and $3.0 billion in revenue versus $3.10 billion expected; revenue declined 1.3% year over year.
• Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $135.57, while the company also faces shareholder litigation alleging trading-related misconduct by Pentwater.

Avis Budget Group, Inc. (NASDAQ:CAR - Free Report) - Analysts at Zacks Research cut their Q3 2026 EPS estimates for Avis Budget Group in a note issued to investors on Tuesday, August 18th. Zacks Research analyst Team now anticipates that the business services provider will post earnings per share of $8.78 for the quarter, down from their previous forecast of $9.10. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Avis Budget Group's current full-year earnings is $1.69 per share. Zacks Research also issued estimates for Avis Budget Group's Q4 2026 earnings at ($0.40) EPS, FY2026 earnings at $1.35 EPS, Q1 2027 earnings at ($3.92) EPS, Q2 2027 earnings at $1.86 EPS, Q3 2027 earnings at $6.62 EPS, Q4 2027 earnings at $0.81 EPS, FY2027 earnings at $5.38 EPS, Q1 2028 earnings at $1.27 EPS, Q2 2028 earnings at $2.83 EPS and FY2028 earnings at $8.76 EPS.

Avis Budget Group (NASDAQ:CAR - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The business services provider reported $0.98 EPS for the quarter, missing the consensus estimate of $2.05 by ($1.07). The company had revenue of $3 billion for the quarter, compared to analyst estimates of $3.10 billion. During the same period in the previous year, the business posted $0.10 EPS. The business's quarterly revenue was down 1.3% compared to the same quarter last year.

Other analysts have also recently issued research reports about the company. The Goldman Sachs Group raised their target price on Avis Budget Group from $85.00 to $95.00 and gave the stock a "sell" rating in a research report on Friday, July 24th. Wall Street Zen lowered Avis Budget Group from a "hold" rating to a "sell" rating in a research report on Saturday, August 1st. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $125.00 price objective on shares of Avis Budget Group in a research note on Friday, May 1st. Barclays set a $160.00 price objective on Avis Budget Group and gave the stock an "equal weight" rating in a research report on Monday, June 8th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Avis Budget Group in a research note on Monday. Five analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat.com, Avis Budget Group presently has a consensus rating of "Reduce" and an average target price of $135.57.

Avis Budget Group Stock Up 2.8%

Shares of NASDAQ:CAR opened at $141.46 on Thursday. The company's fifty day moving average is $158.80 and its two-hundred day moving average is $169.01. The company has a market cap of $5.00 billion, a P/E ratio of -7.79 and a beta of 1.92. Avis Budget Group has a 12-month low of $85.96 and a 12-month high of $847.70.

Hedge Funds Weigh In On Avis Budget Group

A number of hedge funds have recently modified their holdings of CAR. Parallel Advisors LLC raised its holdings in shares of Avis Budget Group by 11.6% during the first quarter. Parallel Advisors LLC now owns 587 shares of the business services provider's stock worth $86,000 after acquiring an additional 61 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in Avis Budget Group by 19.6% in the second quarter. EverSource Wealth Advisors LLC now owns 427 shares of the business services provider's stock valued at $72,000 after purchasing an additional 70 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in Avis Budget Group by 26.5% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 363 shares of the business services provider's stock worth $58,000 after purchasing an additional 76 shares during the last quarter. Oregon Public Employees Retirement Fund increased its position in Avis Budget Group by 3.0% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 3,474 shares of the business services provider's stock worth $507,000 after purchasing an additional 100 shares during the last quarter. Finally, State of Michigan Retirement System raised its stake in shares of Avis Budget Group by 2.5% during the 1st quarter. State of Michigan Retirement System now owns 4,073 shares of the business services provider's stock worth $594,000 after purchasing an additional 100 shares in the last quarter. 96.35% of the stock is owned by institutional investors and hedge funds.

More Avis Budget Group News

Here are the key news stories impacting Avis Budget Group this week:

• Positive Sentiment: Investors who purchased Avis securities during the February 20, 2025–April 21, 2026 class period may be eligible to seek compensation, with a September 29, 2026 deadline to apply as lead plaintiff. Any recovery could partially offset shareholder losses, although it would not directly improve Avis’s operating results. Rosen investor deadline notice
• Neutral Sentiment: Multiple law firms reiterated notices about the shareholder class action, so the announcements largely repeat previously reported information rather than represent a new development for Avis’s business. Kaplan Fox class action notice Pomerantz class action filing
• Negative Sentiment: The lawsuit alleges that Pentwater accumulated a roughly 51% economic interest in Avis through shares and cash-settled swaps, then sold 4.3 million shares over two trading days as CAR collapsed. Another notice alleges a $1.75 billion share disposal, short-swing trading profits, and a reported $650 million settlement. The claims remain allegations, but they add litigation, regulatory, and reputational risk. Levi and Korsinsky shareholder alert Pentwater securities class action alert
• Negative Sentiment: Analysts’ reported consensus price target of $132.75 suggests valuation pressure relative to the stock’s recent trading level. Avis also recently missed quarterly earnings and revenue expectations, reinforcing concerns about near-term fundamentals. Avis analyst price target report

Avis Budget Group Company Profile

Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers.

The company's roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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