Avis Budget Group (CAR) shares were up 1.3% in the extended trading session on Tuesday after the company posted robust second-quarter results, driven by strong demand momentum in the Americas and internationally.
Shares of the vehicle sharing and rental services provider have jumped 253% over the past year. Currently, the company has a $6.27 billion market capitalization. (See Avis Budget Group stock charts on TipRanks)
Adjusted earnings of $5.90 per share beat analysts’ expectations of $1.14 per share by a wide margin. The company reported an adjusted loss of $5.60 per share in the prior-year quarter.
Furthermore, revenues more than tripled to $2.4 billion, compared to $760 million reported in the year-ago quarter, with the result exceeding the consensus estimate of $1.86 billion.
The increase in revenues reflected a surge in revenue per day as well as a rise in rental days, driven by a recovery in demand in the Americas and international regions.
Commenting on the results, Avis Budget Group CEO Joe Ferraro said, “This is the best quarter result in our Company’s history and a validation of all the hard work our team has put in since the pandemic began.”
Ferraro added, “The momentum we saw in the second quarter is expected to continue through the summer and our team will be ready to take advantage of increased demand while maintaining rigorous cost discipline.”
Deutsche Bank analyst Chris Woronka recently reiterated a Hold rating on the stock with a price target of $91 (1.31% upside potential).
Woronka expects the company to report an adjusted loss of $2.43 per share for the third quarter of 2021.
Overall, the stock has a Hold consensus rating based on 4 unanimous Holds. The average Avis Budget price target of $84 implies 6.5% downside potential from current levels.
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