It was a rough end to the year for Avis Budget Group Inc. (NASDAQ:CAR) that saw CAR shares take a nosedive today.
The car rental provider released its quarterly earnings data late in the day Wednesday, revealing that it lost $31 million, or 35 cents per share. In the year-ago period, Avis Budget Group lost $5 million, or six cents per share.
Excluding certain items, the company earned 15 cents per share, which was weaker than the 18 cents per share brought in by the company a year ago. The figure came in below the 17 cents per share that analysts were expecting on an adjusted basis.
Revenue declined 1.2% year-over-year as it amounted to $1.88 billion, which missed expectations by $80 million. Avis Budget Group also released updates of what it expects for fiscal 2017.
Over the course of the year, the company predicts a revenue hike of 3%, higher than the previous estimate of 2%. This will amount to $8.95 billion, which is higher than the bottom line of $8.8 billion.
The consensus estimate — according to Thomson Reuters — is set at $9 billion. Adjusted earnings are expected to surge $3.05 to $3.75, which is in line with the average estimate of $3.45.
Lucintel published a market report that reveals a positive future for the global car rental industry as it is expected to rise at a CAGR of 5.6% from 2016 to 2021. Tourism is a major factor that will aid the industry.
CAR stock fell 13.1% Thursday.
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