Avis Swings To Q2 Profit, Lifts FY Outlook - Update

(RTTNews) - Avis Budget Group Inc. (CAR) on Monday reported a swing to second-quarter profit as the US auto-rental chain's sales grew 10 percent on strong rental volumes and rates in North America. Both earnings and revenues for the quarter trumped Wall Street expectations. Shares of the company rose about 4 percent in extended trade on the New York Stock Exchange, after lifting its full-year financial forecast.

Parsippany, New Jersey-based Avis reported a second-quarter profit of of $26 million or $0.24 per share, compared to a loss of $28 million or $0.26 per share last year.

Excluding one-time items, adjusted earnings improved to $0.68 per share from $0.50 per share last year. On average, eight analysts polled by Thomson Reuters expected earnings of $0.61 per share for the second quarter. Analysts' estimates typically exclude special items.

Revenues for the second quarter grew 10 percent to $2.19 billion, helped largely by 8 percent increase in rental days and increased pricing in North America. Analysts had a consensus revenue estimate of $2.13 billion for the quarter.

"Our strong second quarter results were driven by our continued growth in both volume and pricing in North America and our relentless focus on accelerating growth in our most profitable channels," said CEO Ronald Nelson.

Avis' North America car-rental revenues grew 12 percent as volumes increased 5 percent and prices rose 4 percent. International revenues improved 7 percent due mainly to 2 percent increase in rental days and 6 percent increase in total revenue per rental day. Truck rental revenues dropped about 2 percent.

Looking forward to the full-year 2014, the company now expects adjusted earnings of $2.75 to $3.05 per share and revenues of $8.6 billion to $8.7 billion. Analyst currently expect earnings of $2.88 per share on revenues of $8.49 billion for the full year 2014.

Previously, Avis expected adjusted earnings of $2.50 to $2.95 per share with revenues of $8.4 billion to $8.6 billion.

CAR closed Monday's trading at $58.12, up $1.13 or 1.98%, on the NYSE. The stock further gained $1.93 or 3.32%, in the after-hours trade.