Why Avis Budget (CAR) Stock Is Rising – Avis Budget Gr (NASDAQ:CAR)

Avis Budget Group CAR shares are trading higher by 2.91% to $226.91 during Tuesday’s pre-market session after the company reported better-than-expected fourth-quarter financial results.

So What Happened?

Avis reported quarterly earnings of $10.46 per share which beat the analyst consensus estimate of $6.79. The company also reported quarterly sales of $2.77 billion which beat the analyst consensus estimate of $2.69 billion by 3%. This sales figure is an 8% increase over sales of $2.57 billion in the same period last year.

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The company highlighted full year revenues increased 29% compared to the prior year and 31% compared to 2019, at $12.0 billion. Net income was $2.8 billion and Adjusted EBITDA was $4.1 billion, both full year records for the company.

Avis says the company’s liquidity position at the end of the quarter was approximately $1.6 billion with an additional $1.9 billion of fleet funding capacity. Avis says the company presently has well-laddered corporate debt and no meaningful maturities until 2024.

What Else?

“Our fourth quarter demand was strong with our commercial business performing well above 2019 levels, and the leisure segment continuing its strong performance, especially over the holiday period. These trends have continued into the first quarter,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.

“2022 was a record setting year for our company, and I want to thank our team, all around the world, for their outstanding efforts and look forward to another successful year in 2023.”

According to data from Benzinga Pro, CAR has a 52-week high of $327.80 and a 52-week low of $131.83.