Avis Budget Group In-Line With Earnings Pre-Announcement

Goldman Sachs has published a research report on Avis Budget Group CAR after the company reported 3Q results that were in-line with its October 7 pre-announcement. In the report, Goldman Sachs writes "after the close, Avis Budget reported 3Q2010 earnings that were inline with the company's October 7 pre-announcement. Revenues of $1.5 bn were in-line with our $1.5 bn estimate while Adjusted Corporate EBITDA of $219 mn was essentially in-line with our recently revised estimate of $215 mn, implying margins of 14.5% vs. our estimate of 14.4%. Regarding its outlook, though the company does not give Corporate EBITDA or EPS guidance, Avis Budget expects volumes to increase yoy in 4Q; however, yoy pricing comparisons are expected to remain challenging in 4Q due to tough leisure pricing comps from last year. Domestic fleet depreciation costs are expected to be down 9%-11% per unit compared with down 8-10% previously. Management also tightened its 2010 incremental cost savings projection to $60-$70 mn from $50-$70 mn." Avis Budget Group closed yesterday at $11.81.