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Avis Budget Stock Declines 11% Despite Reporting Q3 Earnings Beat

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Key Takeaways

  • Avis Budget posted Q3 EPS of $10.11, rising 52% y/y and beating estimates by 24.7%.
  • Revenues rose 1.1% to $3.5B, with Americas down 1% and international up 7%.
  • Adjusted EBITDA grew 11% to $559M, led by strong 37% international segment gains.

Avis Budget Group, Inc. (CAR - Free Report) reported impressive third-quarter 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

The company’s adjusted earnings per share of $10.11 beat the Zacks Consensus Estimate by 24.7% and increased 52% from the year-ago quarter. Revenues of $3.5 billion outpaced the consensus estimate by 1.1%. The metric gained 1.1% year over year.

The stock witnessed a 11.1% decline since the earnings release on Oct. 27 despite posting earnings and revenues beat.

CAR shares have jumped 43.1% in the past year against the industry’s decline of 13.9% and the Zacks S&P 500 composite’s growth of 17.8%.

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

 

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote

Avis Budget’s Segmental Revenues

Revenues from the Americas amounted to $2.6 billion, indicating a 1% decline from the year-ago quarter’s reported figure. The metric met our estimate.

International revenues were $898 million, up 7% year over year. The figure beat our estimation of $863.6 million.

CAR’s Profitability

Adjusted EBITDA was $559 million, up 11% from the year-ago quarter. The Americas segment reported adjusted EBITDA of $398 million, increasing 4% year over year. Internationally, adjusted EBITDA was $190 million, jumping 37% from the year-ago quarter.

Balance Sheet & Cash Flow of CAR

Avis Budget exited the third quarter of 2025 with cash and cash equivalents of $564 billion compared with $541 million at the end of the second quarter of 2025. Corporate debt amounted to $6.1 billion, flat with the preceding quarter.

CAR generated $1.4 billion in net cash from operating activities. The adjusted free cash flow utilized was $42 million. Capital expenditure was $51 million.

Avis Budget carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Gartner, Inc. (IT - Free Report) posted third-quarter 2025 results.

The company’s adjusted earnings per share of $2.76 beat the Zacks Consensus Estimate by 14.5% and increased 4.4% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate by a slight margin and improved 2.7% year over year.

Clean Harbors, Inc. (CLH - Free Report) reported dismal third-quarter 2025 results.

CLH’s earnings of $2.21 per share missed the Zacks Consensus Estimate by 6.8% but increased 4.3% from the year-ago quarter. Total revenues of $1.5 billion missed the consensus estimate by 1.7% but moved up 1.3% on a year-over-year basis.


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