NEW YORK (TheStreet) -- Avis Budget Group (CAR) is soaring after reporting a fourth quarter which beat estimates on the top- and bottom-line. Management also forecast fiscal 2014 earnings and revenue in-line with consensus.
By noon, shares had added 7.9% to $43.14.
The car rental company recorded per-share earnings of 15 cents on revenue 8.8% higher year over year to $1.85 billion. Analysts surveyed by Thomson Reuters had forecast net income of 12 cents a share on $1.83 billion in revenue.
Higher quarterly revenue was due to a 6% increase in rental days and the acquisition of Zipcar in March 2013 which contributed an additional $74 million in sales. Payless Car Rental, purchased in July 2013, added $21 million in sales to quarterly revenue.
Including one-time charges, the company reported a net loss of $28 million due to restructuring costs in Europe and the paying down of debt. The loss was narrower than a net loss of $46 million in the year-ago quarter.
Over fiscal 2013, net income of $2.20 a share exceeded consensus by 3 cents a share and revenue 8% higher to $7.94 billion was $10 million more than expected.
"Our initiatives to accelerate growth in higher-profit customer segments and channels drove both strong volume and positive pricing. We also made a number of investments that not only expanded our global footprint, but also positioned us to benefit from faster-growing markets, highlighted by our acquisition of Zipcar," said CEO Ronald L. Nelson in a statement.
For fiscal 2014, the Parsippany, NJ-based business expects revenue between $8.3 billion and $8.5 billion, a 5% to 7% year-over-year increase. Diluted earnings are forecast to rise 11% to 30% to between $2.45 and $2.85 a share.