Dollar Thrifty Automotive Group Inc. posted a larger-than-expected 80 percent rise in second-quarter earnings on higher revenue and raised its profit forecast for the year, according to Reuters.
Net income increased to $20.3 million, or 79 cents per share, from $11.3 million, or 43 cents per share, a year earlier. Wall Street analysts had expected the company to earn 52 cents per share, according to Reuters Estimates.
Total revenue rose 15.8 percent to $426 million. Vehicle rental revenue increased 17.3 percent to $393.7 million.
"We achieved very strong revenue growth, operated at high levels of vehicle utilization, made good progress on our franchise acquisition program and significantly increased the bottom line," Chief Executive Gary Paxton said.
Dollar Thrifty said it expected the travel market to remain healthy, but vehicle costs were likely to increase as automakers hold back sales to car rental companies.
The company forecast 2006 earnings of $2.25 to $2.55 per share, up from its previous estimate of $2.15 to $2.45, Reuters reports.