Avis Budget Group Soars On Strong Q4 Earnings Beat

Avis Budget Group Inc. (NASDAQ: CAR) shares spiked higher after posting a big fourth-quarter earnings beat.

Fourth-quarter earnings came in at 53 cents per share, beating estimates by 16 cents. Sales came fell in-line with estimates at $2.05. The company said it sees full-year 2019 adjusted earnings of $3.35-$4.20 and sales of $9.2-$9.5 billion.

"Our company had a very successful 2018, expanding margin and reporting our ninth consecutive year of revenue growth," said Larry De Shon, Avis President and CEO. "We ended the year strong, reporting record fourth quarter Adjusted EBITDA and Adjusted earnings per share, driven by a more than 2% increase in Americas pricing and substantially lower overall per-unit fleet costs."

"Looking forward, we are investing in our future and leveraging innovation to build on our position as a leading global provider of mobility solutions, while also focusing on improving our profitability today," said De Shon.

Other Highlights

• Revenues grew 2 percent in the fourth quarter
• Americas per-unit fleet costs were 7 percent lower in the quarter
• Net income of $13 million
• Adjusted EBITDA was $142 million in the quarter

Shares traded around $32.23 at time of publication, higher by 9.6 percent in the after-hours session. Hertz Global Holdings Inc (NYSE: HTZ) traded higher by more than 4 percent in sympathy.