Avis Budget Group, Inc. (NASDAQ:CAR) shares are trading lower Wednesday after the company reported mixed first-quarter results.
- Avis shares are sliding. Why is CAR stock falling?
Q1 Results
Avis reported a loss of $8.01 per share, missing the consensus estimate of a $7.63-loss. In addition, it reported revenue of $2.53 billion, beating the consensus estimate of $2.42 billion.
Revenue per day, excluding exchange rate effects, increased 3% in both the Americas and International segments compared to the prior-year period.
Vehicle utilization reached 70% in both segments, marking a first-quarter record in more than fifteen years.
Adjusted free cash flow totaled $80 million, representing an improvement of more than $570 million year-over-year.
The company ended the quarter with liquidity of $915 million and an additional $2.9 billion of fleet funding capacity.
"We executed on the changes we outlined last quarter, and the first quarter reflects a meaningful inflection in our operating performance," said CEO Brian Choi. "With tighter fleet discipline, improving pricing, and stronger utilization, we are building a more resilient business with clear momentum heading into the rest of the year."
Avis Shares Drop
CAR Price Action: At the time of publication, Avis shares are trading 5.12% lower at $172.70, according to data from Benzinga Pro.
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