Market Overview

Avis Budget Group Reports Mixed Q1 Earnings As Pandemic Hits Car Rental Business

Avis Budget Group Reports Mixed Q1 Earnings As Pandemic Hits Car Rental Business

Avis Budget Group Inc. (NASDAQ: CAR) on Monday reported total revenue of $1.8 billion in its first quarter, down 9% from the same quarter a year ago.

The parent company of Avis Car Rental posted a net loss of $158 million, or loss per share of $2.16. This compares with the $91 million net loss, or $1.20 per share, posted in the first quarter of 2019.

Analysts had estimated a loss per share of $1.89 on a revenue of $1.75 billion, according to MarketWatch.

The car rental company said it expects revenue in April and May to drop 80% year-on-year as a fallout of the coronavirus (COVID-19) pandemic, but expects business to recover gradually from June onwards as travel resumes.

See Also: Hertz Plummets Amid Reports Company Could File For Bankruptcy This Week

Avis had $1.6 billion in liquidity at the end of the quarter, including $0.7 billion in cash and cash equivalents, which it believes sufficient to last the rest of 2020.

"We have no meaningful corporate debt maturities until 2023 and have no material fleet financing maturities in 2020," the company said.

The company is reporting earnings at a time when its rival Hertz Global Holdings, Inc. (NYSE: HTZ) is reportedly preparing to flile for bankruptcy.

Avis shares closed 0.5% higher a $13.97 on Monday, and dropped about 0.7% in after-hours trading.

Photo credit: Raysonho @ Open Grid Scheduler / Grid Engine, via Wikimedia


Related Articles (CAR)

View Comments and Join the Discussion!

Posted-In: Earnings News Guidance After-Hours Center Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at