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Avis Budget Group Inc. (CAR) Tanks on Disappointing Q4

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It was a rough end to the year for Avis Budget Group Inc. (NASDAQ: CAR ) that saw CAR shares take a nosedive today.

The car rental provider released its quarterly earnings data late in the day Wednesday, revealing that it lost $31 million, or 35 cents per share. In the year-ago period, Avis Budget Group lost $5 million, or six cents per share.

Excluding certain items, the company earned 15 cents per share, which was weaker than the 18 cents per share brought in by the company a year ago. The figure came in below the 17 cents per share that analysts were expecting on an adjusted basis.

Revenue declined 1.2% year-over-year as it amounted to $1.88 billion, which missed expectations by $80 million. Avis Budget Group also released updates of what it expects for fiscal 2017.

Over the course of the year, the company predicts a revenue hike of 3%, higher than the previous estimate of 2%. This will amount to $8.95 billion, which is higher than the bottom line of $8.8 billion.

The consensus estimate - according to Thomson Reuters - is set at $9 billion. Adjusted earnings are expected to surge $3.05 to $3.75, which is in line with the average estimate of $3.45.

Lucintel published a market report that reveals a positive future for the global car rental industry as it is expected to rise at a CAGR of 5.6% from 2016 to 2021. Tourism is a major factor that will aid the industry.

CAR stock fell 13.1% Thursday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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