Avis Budget (CAR) Stock Rises in After-Hours Trading on Higher Revenue Outlook

NEW YORK (TheStreet) -- Avis Budget (CAR) - Get Report stock is up by 1.53% to $23.90 in after-hours trading on Tuesday, after the car and truck rental company increased its 2016 revenue guidance.

For the full year, the Parsippany, NJ-based company expects to report revenue between $8.75 billion and $8.9 billion, compared with its previous outlook of $8.7 billion to $8.85 billion. Avis Budget maintained its earnings guidance at $2.70 to $3.30 per share.

Additionally, the company delivered a wider-than-expected loss, but revenue in line with estimates for the 2016 first quarter.

Avis Budget reported a loss of 28 cents per share for the latest quarter, while analysts had estimated a loss of 7 cents per share.

Revenue increased by 2% year over year to $1.88 billion, meeting analysts' expectations for the quarter.

"Our first quarter results reflect modest demand growth and unusually soft pricing in the Americas," CEO Larry De Shon said in a statement. "Pricing has already started to turn the corner, and we expect to see progressive improvement in both our pricing metrics and our earnings comparisons over the course of the year."

Separately, Avis Budget has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's unimpressive growth in net income, generally higher debt management risk and a generally disappointing performance in the stock itself.

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 article's author.