Avis Budget Stock Declines 11% Despite Reporting Q3 Earnings Beat

Avis Budget Group, Inc. CAR reported impressive third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

The company’s adjusted earnings per share of $10.11 beat the Zacks Consensus Estimate by 24.7% and increased 52% from the year-ago quarter. Revenues of $3.5 billion outpaced the consensus estimate by 1.1%. The metric gained 1.1% year over year.

The stock witnessed a 11.1% decline since the earnings release on Oct. 27 despite posting earnings and revenues beat.

CAR shares have jumped 43.1% in the past year against the industry’s decline of 13.9% and the Zacks S&P 500 composite’s growth of 17.8%.

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

 

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote

Avis Budget’s Segmental Revenues

Revenues from the Americas amounted to $2.6 billion, indicating a 1% decline from the year-ago quarter’s reported figure. The metric met our estimate.

International revenues were $898 million, up 7% year over year. The figure beat our estimation of $863.6 million.

CAR’s Profitability

Adjusted EBITDA was $559 million, up 11% from the year-ago quarter. The Americas segment reported adjusted EBITDA of $398 million, increasing 4% year over year. Internationally, adjusted EBITDA was $190 million, jumping 37% from the year-ago quarter.

Balance Sheet & Cash Flow of CAR

Avis Budget exited the third quarter of 2025 with cash and cash equivalents of $564 billion compared with $541 million at the end of the second quarter of 2025. Corporate debt amounted to $6.1 billion, flat with the preceding quarter.

CAR generated $1.4 billion in net cash from operating activities. The adjusted free cash flow utilized was $42 million. Capital expenditure was $51 million.

Avis Budget carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Gartner, Inc. IT posted third-quarter 2025 results.

The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 4.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% year over year.

Clean Harbors, Inc. CLH reported dismal third-quarter 2025 results.

CLH’s earnings of $2.21 per share missed the Zacks Consensus Estimate by 6.8% but increased 4.3% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 1.7% but moved up 1.3% on a year-over-year basis.

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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report

Gartner, Inc. (IT) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

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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