The company’s quarterly profit of $5.15 a share significantly missed analyst projections of $8.27. Revenue also saw a slight contraction, slipping 2% to $3.44 billion, even as the figure managed to edge past the $3.42 billion anticipated by Wall Street. Chief Executive Brian Choi pointed to a cooling travel environment as a primary headwind.
In section Market Quotes
Avis Budget Group Profit Halves Amid Rising Fleet Expenses
Avis Budget Group reported a sharp decline in third-quarter earnings on Tuesday, with profit dropping to $183 million from $359 million a year prior. The car-rental giant struggled against a combination of softening travel demand and a 4% surge in monthly per-unit fleet costs, particularly across its critical Americas division.
The Americas region, which serves as the company's largest revenue driver, saw sales dip 3% to $2.55 billion. This decline was largely attributed to a reduction in total rental days compared to the same period last year. Investors reacted sharply to the results, sending shares down 11% to $97.79 in post-market trading, extending the stock's year-to-date decline to 15%.
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