Shares of Avis Budget Group (NASDAQ: CAR) , a provider of automotive vehicle rental and car sharing services with brands including Avis, Budget, and Zipcar, are down 14% as of 12:46 p.m. EDT Wednesday after the company released second-quarter results.
Revenue increased 4% to a record $2.3 billion during the second quarter, still falling short of analysts' estimates. Adjusted earnings per share (EPS) checked in at $0.57, well ahead of the prior year's $0.30 per-share mark and ahead of analysts' estimates calling for $0.55 per share.
"We made a number of strategically important tuck-in acquisitions during the quarter and are also very excited about our recent announcements regarding Amazon , Lyft and Luxury Retreats, which was acquired by Airbnb in February 2017, as we expand our reach to include some of the leading innovators in their respective industries." Said Larry De Shon, Avis Budget Group president and chief executive officer, in a press release.
Despite management's mostly positive spin on the quarterly results, its guidance update was mixed. The company lowered full-year 2018 revenue guidance from $9.2 billion to $9.45 billion down to $9.05 billion to $9.30 billion, but also raised its full-year EPS estimate from $2.90 to $3.75 up to $3.00 to $3.85 per share. Part of Avis' decline Wednesday is likely due to hyped expectations. Remember, just yesterday its competitor Hertz Global Holdings Inc. (NYSE: HTZ) posted such a strong second quarter its shares popped more than 20% , which pulled Avis' shares up in anticipation of its own second-quarter earnings due later that day.
10 stocks we like better than Avis Budget Group
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Avis Budget Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.