Avis Budget Group Inc (CAR) Reports Q3 Earnings with $3.6 Billion in Revenue
Avis Budget Group Inc (NASDAQ:CAR) reported Q3 2023 revenues of $3.6 billion, driven by peak demand and seasonal revenue per day increases.
The company's net income for the quarter was $627 million, and Adjusted EBITDA was $907 million.
Avis repurchased approximately 2.2 million shares of common stock for a total of $487 million during the quarter.
The company's liquidity position at the end of the quarter was approximately $1.0 billion, with an additional $1.1 billion of fleet funding capacity.
On November 1, 2023, Avis Budget Group Inc (NASDAQ:CAR) announced its financial results for the third quarter of 2023. The company reported revenues of $3.6 billion, driven by peak demand and seasonal revenue per day increases. The net income for the quarter was $627 million, and the Adjusted EBITDA was $907 million.
Financial Performance and Achievements
Avis Budget Group Inc (NASDAQ:CAR) ended the third quarter with a strong financial performance. The company's revenues were $3.6 billion, driven by a 5% increase in rental days compared to the third quarter of 2022. The Adjusted EBITDA in the Americas was $740 million, driven by strong demand and a seasonal revenue per day increase. The Adjusted EBITDA in International was $196 million, driven by peak demand.
The company also repurchased approximately 2.2 million shares of common stock for a total of $487 million during the quarter. In July 2023, Avis issued 400 million Senior Notes due July 2030 primarily to redeem its outstanding 300 million Senior Notes due November 2024.
Income Statement, Balance Sheet, and Cash Flow Statement Highlights
According to the income statement, Avis Budget Group Inc (NASDAQ:CAR) reported a net income of $627 million for the third quarter. The company's balance sheet shows a liquidity position of approximately $1.0 billion at the end of the quarter, with an additional $1.1 billion of fleet funding capacity. The cash flow statement reveals that the company repurchased approximately 2.2 million shares of common stock for a total of $487 million during the quarter.
Company's Performance Analysis
Avis Budget Group Inc (NASDAQ:CAR) demonstrated a robust performance in the third quarter of 2023. The company's record volume in the Americas, coupled with anticipated seasonal price improvements, contributed to its strong financial results. The company's CEO, Joe Ferraro, expressed optimism about the company's performance, stating, "October started off strong and we expect it to continue throughout the holiday season."
Other Pertinent Details
The company will host a conference call to discuss its third quarter results on November 2, 2023, at 8:30 a.m. (ET). Investors may access the call on the company's investor relations website or by dialing (800) 274-8461 and referencing the conference ID: AVIS.
Explore the complete 8-K earnings release (here) from Avis Budget Group Inc for further details.
This article first appeared on GuruFocus.
