Avis Shares Down 10% After Company Misses EPS, Sales Forecasts

Avis Budget Group Inc. shares tanked more than 10% late Monday after the car rental company missed per-share earnings and sales expectations for its second quarter. Avis said it earned $3 million, or 4 cents a share, in the quarter, compared with $36 million, or 38 cents a share, in the year-ago period. Adjusted for one-time items, Avis said it earned 30 cents a share, compared with 63 cents a share a year ago. The company reported revenue of $2.2 billion, unchanged compared with a year ago, as increase in overall rental days was offset by a decrease in pricing and strong international revenue growth offset lower revenue in the Americas. Analysts polled by FactSet had expected adjusted earnings of 52 cents a share on sales of $2.3 billion. Avis also updated its full-year 2017 guidance, and said it expects sales between $8.8 billion and $9 billion for the year as well as adjusted EPS between $2.40 and $2.85. The analysts surveyed by FactSet expect 2017 sales to reach $8.8 billion and an adjusted EPS of $2.78 for the year.