Avis Budget (CAR) Stock Plunges in After-Hours Trading on Earnings Miss

Avis Budget (CAR) stock is declining in after-hours trading after the company reported lower than expected earnings and revenue for the third quarter of 2015.
By Amanda Gomez ,

NEW YORK (TheStreet) -- Avis Budget Group (CAR) - Get Report stock is falling by 8.8% to $47.70 in after-hours trading on Monday, after the company reported financial results that missed estimates for the 2015 third quarter.

The car rental company reported earnings of $1.98 per share on revenue of $2.58 billion for the quarter ended September 30.

Analysts had estimated for earnings of $2.02 per share on $2.6 billion in revenue for the latest quarter.

Revenue from the company's Americas segment increased by 2% year-over-year to $1.78 billion, while international revenue was flat at $801 million due to a negative impact from currency exchanges rates.

"Revenues and earnings grew year-over-year despite significant exchange-rate headwinds," CEO Ronald Nelson said in a statement. "Our growth reflected strong summer demand across Europe, lower per-unit fleet costs and benefits from our acquisitions."

Additionally, Avis Budget lowered its 2015 earnings guidance to $3.10 to $3.25 per share, from its previous outlook of $3.15 to $3.45 per share.

Separately, TheStreet Ratings team rates AVIS BUDGET GROUP INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate AVIS BUDGET GROUP INC (CAR) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: CAR

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