NEW YORK (TheStreet) -- Avis Budget Group (CAR) - Get Report stock is declining 11.30% to $26.60 in after-hours trading Tuesday after the car and truck rental company issued lower than expected 2016 earnings guidance.
The Parsippany, NJ-based company set its earnings outlook at $2.70 to $3.30 per share for the year, while analysts estimated earnings of $3.43 per share.
"Our 2016 earnings outlook reflects incremental investments we are making in our business to enhance the customer experience we offer and expand our long-term margins," CEO Larry De Shon said in a statement.
After today's market close, Avis Budget also announced its 2015 fourth quarter financial results with better than expected earnings, but revenue that fell short of estimates.
The company posted earnings of 18 cents per share for the quarter ended December 31, beating estimates by 1 cent.
Revenue increased 1% year-over-year to $1.9 billion for the latest quarter, just below estimates of $1.92 billion.
Separately, Avis Budget has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, notable return on equity and earnings per share growth, and its weaknesses including generally higher debt management risk, weak operating cash flow and generally disappointing stock performance.
You can view the full analysis from the report here: CAR
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.