NEW YORK (TheStreet) -- Avis Budget Group (CAR) - Get Report stock is plummeting by 24.64% to $22.60 on heavy volume in early-afternoon trading on Wednesday, after the company issued 2016 earnings guidance below analysts' expectations.
For the full year, the car rental company anticipates that per-share earnings will range between $2.70 and $3.30, below analysts' estimates for earnings of $3.43 per share.
The reduced forecast includes a 17-cent negative impact from currency exchange rates. Avis also plans to invest more to improve customer experience.
In all, Avis reported 2015 fourth quarter adjusted earnings of 18 cents per share, above estimates for 17 cents per share. Revenue was $1.9 billion for the quarter, below expectations for $1.92 billion.
About 15.8 million shares of Avis have been traded so far today, well above the company's average trading volume of roughly 3.38 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Avis Budget Group's strengths such as its revenue growth, notable return on equity and growth in earnings per share are countered by weaknesses including generally higher debt management risk, weak operating cash flow 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.