Avis Budget stock drops after earnings miss
Avis Budget Group Inc. shares took a hit in after-hours trading Monday after the car-rental company reported lighter quarterly profit and revenue than expected. Avis Budget reported third-quarter net income of $213 million, or $2.68 a share, on revenue of $2.78 billion, up slightly from $2.75 billion a year ago. After adjustments for taxes and other effects, the company claimed earnings of $3.33 a share, up from $3.10 a share a year ago. Analysts on average expected adjusted earnings of $3.56 a share on sales of $2.81 billion, according to FactSet. Avis also narrowed its full-year guidance ranges, and now expects full-year adjusted earnings of $3.30 to $3.70 a share on revenue of $9.1 billion to $9.2 billion. Shares declined more than 4% in after-hours action following the release of the report. Avis stock has declined 29.2% so far this year, as the S&P 500 index has increased 1.9%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.