Avis Shares Rise on Positive 4Q Results

Shares of Avis Budget Group Inc. surged recently, after the car-rental company said it posted a steep loss for the fourth quarter, but its adjusted results beat Wall Street predictions.

In a recent afternoon trading, Avis Budget shares rose $1.33, or 11.4 percent, to $12.99 after peaking at $13.07 earlier in the day.

The news also pulled shares of rival Hertz Global Holdings Inc., which reports its results next week, up 80 cents, or 6 percent, to $14.22 after reaching $14.41 earlier in the session.

Avis Budget's results included a $1.1 billion charge mainly related to the decline in market value of the stock price at year-end compared with book value. Excluding that charge, the company earned 27 cents per share, while analysts expected earnings of 18 cents per share.

Analysts predicted a rocky 2008 for the car-rental companies in light of uncertain demand resulting from an economic slowdown.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>