CORRECTED-Avis Budget Q2 revenue misses estimates amid booking trends shift

Corrects metric in table to Net Income attributable to Avis Budget, from Net Income

Overview

• U.S. car rental firm's Q2 revenue fell 1% yr/yr, missing analyst expectations

• Adjusted EBITDA for Q2 rose 3% and beat analyst expectations

• Company achieved record Q2 vehicle utilization in Americas, aided by proactive fleet management

Outlook

• Company did not provide specific guidance for current or future quarters

Result Drivers

• FLEET RESIZING - Co said it quickly resized its fleet as booking trends shifted to protect utilization and returns, per CEO Brian Choi

• RECORD UTILIZATION - Vehicle utilization in the Americas reached a Q2 record high, supported by operational adjustments

• LOWER FLEET COSTS - Per-unit fleet costs fell 4% yr/yr, helping offset revenue pressures

Company press release: ID:nGNX39rS52

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."

• Wall Street's median 12-month price target for Avis Budget Group Inc is $148.00, about 9.6% below its July 27 closing price of $163.68

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 29 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)