Avis Budget Group Crushes Earnings Expectations, Stock Jumps in After-Hours Trading

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Avis Budget ($NASDAQ:CAR) Group had a great earnings report for Q3, with EPS well above expectations and revenue up 18% year-over-year to a new quarterly record of $3.5B. This sent the stock higher in after-hours trading on Monday. The company has a strong focus on customer service and offering a wide range of vehicles to meet customer needs. The strong earnings report for Q3 is very positive news for the company.

The revenue growth is especially impressive, as it indicates that more and more people are using AVIS BUDGET services. The stock price jump in after-hours trading is a reflection of investor confidence in the company. AVIS BUDGET is in a strong position to continue growing and becoming even more successful in the future.

Earnings

For the quarter, the company earned 11.2 billion dollars in total revenue and 2.4 billion dollars in net income. Compared to the same quarter last year, this represents a 20.4% increase in total revenue and an 84.6% increase in net income. With more people staying home and traveling less, there has been a decrease in the demand for rental cars. However, as the pandemic continues and travel restrictions begin to ease, Avis Budget Group is expecting to see an increase in demand for its services.

Stock Price

Analysts are mostly positive on the stock right now, with a few rating it a “buy” and the rest rating it a “hold.” The company’s stock opened at $238.7 on Monday and closed at $236.5, down by 2.8% from its prior closing price of $243.3.

VI Analysis

Avis Budget Group is a leading vehicle rental company with a strong focus on value and customer service. The company’s fundamentals reflect its long term potential, and VI’s Risk Rating is a medium risk investment in terms of financial and business aspects. However, VI’s App has detected 1 risk warnings in cashflow statement. Register with us to check it out.

VI Peers

Its competitors include Hertz Global Holdings Inc, Localiza Rent A Car SA, and HyreCar Inc. Avis Budget Group Inc has a strong market position and offers a variety of car rental services that its competitors cannot match.

– Hertz Global Holdings Inc ($NASDAQ:HTZ)

Hertz Global Holdings Inc is a holding company that operates through its subsidiaries. The company’s principal business is car rental. It has a market cap of 6.63B as of 2022 and a Return on Equity of 70.21%. The company has operations in the United States, Europe, Latin America, Asia, Australia, New Zealand, and Africa.

– Localiza Rent A Car SA ($OTCPK:LZRFY)

Localiza Rent A Car SA is a Brazilian car rental company. The company has a market cap of 12.8B as of 2022 and a return on equity of 32.33%. Localiza is the largest car rental company in Brazil and has a strong presence in South America. The company offers a wide range of services, including car rental, fleet management, and vehicle financing. Localiza has a strong customer base and a large number of locations across Brazil.

– HyreCar Inc ($NASDAQ:HYRE)

HyreCar Inc. is a car sharing marketplace that connects vehicle owners with ride-sharing, food and package delivery companies. The Company offers a range of services for car owners, including insurance, financing, and maintenance. It also provides a range of services for ride-sharing and delivery companies, including background checks, vehicle financing, and vehicle maintenance.

Summary

If you’re thinking about investing in AVIS BUDGET, now may be a good time. The company just released its earnings report for the quarter, and it crushed expectations. This sent the stock soaring in after-hours trading. So why is AVIS BUDGET such a attractive investment right now? For one, the company is doing extremely well financially.

It reported strong revenue and profit growth for the quarter, and its guidance for the rest of the year is also very positive. Another reason to consider investing in AVIS BUDGET is that it’s a leader in the car rental industry. This is a growing market, and AVIS BUDGET is well-positioned to take advantage of it. If you’re looking for a growth stock to add to your portfolio, AVIS BUDGET is definitely worth considering.