NEW YORK (TheStreet) -- Avis Budget Group (CAR) shares are flat in after hours trading on Monday following the release of the rental car company's first quarter financial results after the closing bell today.
The Parsippany, NJ-based company reported first quarter net income of $19 million, or 17 cents per share on an adjusted basis, a slight increase from the 16 cents per share the company reported earning in the year ago period. Revenue in the quarter declined 1% year over year to $1.9 billion.
Analysts on average were expecting the company to report earnings of 14 cents per share on revenue of $1.9 billion.
"Used-vehicle prices have been constructive, and we have right-sized our fleet and taken steps to reduce costs. Looking forward, as we move into the peak travel months, we expect travel demand and pricing to firm, and our full-year earnings projections remain unchanged," said CEO Ronald Nelson.
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 a few notable strengths, 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 revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."