Avis Budget Group (CAR) Sinks Following Q3 'Miss' and Lower Outlook

Shares of Avis Budget Group (NASDAQ: CAR) are tumbling 8% after-hours Monday following a third quarter "miss" and lower outlook for the year.

Third quarter revenue grew 8% in constant currency to a record $2.6 billion. However, that was just in-line with the analyst consensus. Ex-the currency adjustment revenue rose just 1%. Revenues in the Americas grew 2% and revenue for International markets was flat.

On the bottom-line, adjusted EPS rose 4% to $1.98, 4 cents below the analyst estimate of $2.02. Adjusted EBITDA in the Americas grew 1% and 6% Internationally.

The earnings "miss" came despite news from the company that it bought back more stock than in any single quarter in the company history as an independent company. Investors will ask what the quarter would have looked like without the aggressive buybacks.

Looking ahead, Avis Budget Group sees full-year 2015 adjusted EPS of $3.10-$3.25, which is below the consensus of $3.36. The company sees full-year revenue up 1%.

In addition to its own shares, the news has share of rival Hertz (NYSE: HTZ) down 4%.

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