Premarketing: Avis $500M 2025-3 & 4 auto rental car ABS

Premarketing: Avis $500M 2025-3 & 4 auto rental car ABS

Avis Budget Group (CAR) recently reported its second-quarter 2025 earnings, with shares experiencing a 9% decline over the past month. The company's adjusted earnings per share of 10 cents missed the Zacks Consensus Estimate by 95.1% and decreased 75.6% from the year-ago quarter [1].

Revenues of $3 billion lagged the consensus estimate by a slight margin, with revenues from the Americas declining 1% year-over-year to $2.3 billion and international revenues decreasing 3% to $707 million [1]. However, adjusted EBITDA showed a 29% increase to $277 million, driven by a 18% year-over-year increase in the Americas segment and a 71% surge in international operations [1].

The company exited the second quarter with $541 million in cash and cash equivalents, up from $516 million at the end of the first quarter, and corporate debt of $6.1 billion [1]. Avis Budget generated $837 million in net cash from operating activities, with an adjusted free cash flow utilized of $17 million and capital expenditure of $53 million [1].

Analyst estimates have been trending downward, with the consensus estimate shifting -16.24% over the past month [1]. The stock has a Zacks Rank #3 (Hold) and an aggregate VGM Score of C, indicating a mixed outlook from investors [1].

As Avis Budget prepares for its next earnings release, investors should keep an eye on the company's ability to rebound from its recent underperformance. The stock's valuation metrics and recent financial performance suggest a cautious approach, with a focus on the company's operational improvements and market conditions.

References:
[1] https://www.nasdaq.com/articles/avis-budget-car-down-9-last-earnings-report-can-it-rebound