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Avis Budget Group, Inc.

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Intense competitive pressures reduce the profitability of Avis Budget and contract its market share. High fleet costs and continued pricing pressure further continue to hinder Avis Budget earnings. Volatility in market demand, foreign currency risks and dependence on third-parties remain additional headwinds, leading to a tempered guidance. Revenues for 2017 are expected to be in the range of $8.8-$8.95 billion, as adverse movements in currency exchange rates are expected to hurt revenue growth by approximately $75 million. High dependence on third-party distribution channels remains another challenge. The company also underperformed the industry year to date. However, Avis Budget is aggressively increasing its presence in existing markets, as exemplified by the French Cars acquisition. At the same time, the company is focusing on expanding its Budget brand, taking its multi-brand strategy to the next level.

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