Avis Budget Group (CAR) Shares Jump On Earnings, Revenue Beat

Avis Budget Group (NASDAQ: CAR) shares are up over 9% after the close Monday following its third-quarter earnings release, which saw it top analyst profit and revenue expectations.

The car rental company reported earnings per share of $21.70, $7.22 better than the analyst estimate of $14.48, with revenue for the quarter coming in at $3.5 billion versus the consensus estimate of $3.29 billion and 18% above Q3 2021. Revenue was also a new quarterly record for the company.

The company put the revenue beat down to continued strong demand and increased revenue per day.

Avis also reported that adjusted EBITDA in the Americas was $1.2 billion for Q3, driven by "record demand," resulting in its "best quarterly adjusted EBITDA in Americas' history."

"Despite growing concerns around an economic slowdown, our strong summer performance, driven by increased demand in both the commercial and leisure segments, carried through to September," commented Joe Ferraro, Avis Budget Group Chief Executive Officer.

The company also said that it remains optimistic the strong demand will continue throughout the fall and into the holiday season, adding to recent comments from other travel-related firms that demand remains positive.

In 2022, Avis shares are up 13.33%, despite the 2.8% decline in Monday's regular session.

By Sam Boughedda

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