CAR

It has been about a month since the last earnings report for Avis Budget Group (CAR). Shares have lost about 7% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Avis Budget due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Avis Budget Group reported dismal second-quarter 2026 results. CAR’s earnings of 98 cents per share missed the Zacks Consensus Estimate of $2.16 by 54.6%. Earnings improved sharply from 10 cents in the year-ago quarter. Revenues declined 1.3% year over year to $3 billion, missing the consensus of $3.08 billion by 2.8%. Lower rental days weighed on the top line, while disciplined fleet reductions helped lift total vehicle utilization to a second-quarter record of 72.6%. Avis Budget generated net income of $63 million compared with $5 million in the prior-year quarter. Net income attributable to the company was $35 million, up from $4 million a year earlier. Adjusted EBITDA increased 3.2% year over year to $286 million. The improvement came despite lower revenues, reflecting reduced fleet costs, better utilization and tighter expense management. Total rental days fell 2.3% year over year to 43.91 million. The average rental fleet declined 4.9% to 664,638 vehicles as management accelerated vehicle dispositions in response to weakening booking trends. Revenue per day increased 1% to $68.29. Excluding currency effects, revenue per day was $67.84, up slightly from $67.62 in the year-ago quarter. Management prioritized longer-duration rentals, which carried lower daily rates but offered better transaction economics and reduced handling costs. Americas revenues declined 1.9% year over year to $2.29 billion. Rental days decreased 2.1% to 32.60 million, while the average fleet contracted 5.4% to 489,192 vehicles. Americas adjusted EBITDA rose 7.7% to $237 million. Vehicle utilization improved 2.5 percentage points to a record 73.2%, helping offset lower volumes. Revenue per day, excluding currency effects, edged up to $70.22 from $70.03. International revenues were $710 million, nearly flat year over year. Excluding exchange-rate effects, revenues declined 2.5% as rental days fell 2.9% to 11.31 million. Adjusted EBITDA decreased 11% to $73 million. Management cited weaker commercial demand, lower inbound travel and increased industry fleet supply in several European markets. International revenue per day rose 3.4% as reported, but increased only 0.4% excluding currency effects. Vehicle depreciation and lease charges declined 8.3% year over year to $583 million. Total per-unit fleet costs fell 3.6% to $292 per month and decreased 4.3% to $290 excluding currency effects. Operating expenses remained flat at $1.53 billion. Selling, general and administrative expenses declined 2.8% to $385 million, while vehicle interest expense increased slightly to $232 million. Corporate interest expense decreased to $108 million from $110 million. CAR ended June with $558 million in cash and cash equivalents. Available liquidity was approximately $1 billion, with an additional $1.9 billion of fleet funding capacity. During the quarter, the company issued $300 million of senior notes due in 2031 and used the proceeds to reduce notes due in 2027. It also refinanced its $2 billion revolving credit facility, extending the maturity to June 2031. Net corporate leverage stood at 7.4 times, down one turn from year-end 2025. Avis Budget reiterated its full-year adjusted EBITDA guidance of $850 million to $1 billion. Management expects to reduce leverage by at least one full turn by the end of 2026. For the third quarter, the company expects the Americas fleet to remain down by a mid-single-digit percentage. Stronger utilization should partly offset the fleet reduction, while revenue per day is projected to remain roughly flat year over year. Management expects year-over-year adjusted EBITDA growth despite continued pressure on rental volumes. It turns out, fresh estimates have trended downward during the past month. The consensus estimate has shifted -10.91% due to these changes. Currently, Avis Budget has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Avis Budget has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Verra Mobility’s second quarter was marked by notable progress in customer retention, but the market reacted sharply to its revised outlook. Management attributed Q2’s performance to a catch-up in New York City camera installations and improved collections in commercial services, with interim CEO Jon Keyser highlighting new multi-year agreements with both Avis Budget Group and Hertz as critical to stabilizing the business. However, Keyser acknowledged the company is navigating a challenging transition period, stating, “These contracts were executed at lower pricing levels than our existing relationships,” which weighed on profitability and investor sentiment. Is now the time to buy VRRM? Find out in our full research report (it’s free). Revenue: $263.6 million vs analyst estimates of $254 million (11.7% year-on-year growth, 3.8% beat) Adjusted EPS: $0.38 vs analyst estimates of $0.33 (15.1% beat) Adjusted EBITDA: $110.7 million vs analyst estimates of $100.2 million (42% margin, 10.4% beat) The company dropped its revenue guidance for the full year to $955 million at the midpoint from $1.03 billion, a 6.8% decrease Management lowered its full-year Adjusted EPS guidance to $1.14 at the midpoint, a 15.6% decrease EBITDA guidance for the full year is $365 million at the midpoint, below analyst estimates of $382.1 million Operating Margin: -12.4%, down from 26.8% in the same quarter last year Market Capitalization: $726.5 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tomohiko Sano (JPMorgan) asked about the circumstances behind Avis’s initial termination notice and what led to the contract renewal. Interim CEO Jon Keyser emphasized the importance of listening to customer concerns and rebuilding trust at the executive level to secure the extension. Tomohiko Sano (JPMorgan) followed up regarding the key economic changes in the Avis and Hertz renewals, specifically around pricing and volume flexibility. CFO Craig Conti confirmed the new contracts are on less favorable terms, with customers able to modulate fleet volumes, but declined to disclose specifics. Daniel Joseph Moore (CJS Securities) inquired if new contracts included minimum volume floors that would provide revenue visibility. Conti stated he could not disclose contract details but noted the company maintains daily engagement with customers to forecast demand. Daniel Joseph Moore (CJS Securities) pressed for details on the Los Angeles government contract and its revenue potential. Keyser responded that the award could add approximately $10 million in annual recurring revenue once finalized, and highlighted the importance of legislative action in unlocking new opportunities. Faiza Alwy (Deutsche Bank) questioned whether lower commercial margin levels are now the norm or if cost initiatives could offset the decline. Conti indicated margins will remain pressured in the near term but reiterated ongoing efforts to optimize the cost base and improve profitability longer term. In the coming quarters, the StockStory team will be watching (1) the practical impact of the new Avis and Hertz agreements on both revenue stability and margin trajectories, (2) measurable progress on cost reductions and operational transformation, especially in non-labor categories, and (3) the ramp-up of government safety programs, including the Los Angeles rollout. Execution on AI integration and any shifts in parking solutions strategy will also be key indicators of future performance. Verra Mobility currently trades at $4.82, down from $5.61 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

HTZ jumped 39% in a week after Q2 revenue hit $2.4B, up 10% year over year, on pricing power despite operating with a smaller fleet. CAR barely moved while UBER gained 9% on the week, confirming Reddit-fueled retail traders, not sector strength, are driving HTZ higher. Multiple class-action lawsuits, $18.7B in debt, and S&P SmallCap 600 removal all hang over a stock still down 59% year to date. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Hertz Global Holdings (NASDAQ:HTZ) are ripping higher in Tuesday afternoon trading, changing hands around $2.64, a 25% jump from Monday's close of $2.12. The move extends a violent post-earnings bounce, with the stock now up 39% over the past week. The catalyst traces back to Hertz's August 6 Q2 report, which surprised to the upside on nearly every operating line. Revenue landed at $2.396 billion, up 10% year over year, while adjusted EPS of -$0.11 beat consensus handily. Adjusted Corporate EBITDA came in at $81 million, and revenue per unit hit $1,542, above the company's North Star target. CEO Gil West framed the earnings report as validation of the turnaround, saying "This quarter's results reflect the disciplined execution of our strategy and our consistent commercial strength." Revenue grew 10% year over year despite operating with a 1% smaller fleet, a genuine pricing-power tell. The 8-K is on file with the SEC. The rally is happening in spite of a wall of overhangs. Multiple securities class-action complaints allege Hertz made materially false statements about liquidity and the likelihood of a dilutive capital raise between May 7 and June 23, 2026, with a lead-plaintiff deadline of September 22, 2026. A $300 million secured-notes deal announced June 24 triggered the 40%-plus drawdown that anchors those suits. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Layer on removal from the S&P SmallCap 600, which forced index-fund selling, and analyst fair-value cuts from $3.78 to $2.78. The balance sheet is also stretched, with total debt at $18.7 billion and a stockholders' deficit of $628 million. Year to date, HTZ is still down 59%. It's worth noting that Hertz opened the day flat. Buying pressure built between 9:45 a.m. ET and 10:45 a.m. ET. Most of Hertz' gains came from that period as the stock has traded mostly sideways since the morning. The bounce looks idiosyncratic. Avis Budget Group (NASDAQ:CAR), the closest rental peer, is up 3% today to $142 and essentially flat over the past week. Mobility partner Uber Technologies (NYSE:UBER), which is teaming with Hertz's Oro Mobility unit on an AV launch in the San Francisco Bay Area later this year, has climbed 9% on the week, while Lyft (NASDAQ:LYFT) is up 5%. HTZ is running its own race. Retail is fueling the move. Reddit's r/wallstreetbets sentiment score hit 93 on August 7, with posts titled "Upcoming Hertz 10+ Bagger" and "Full port, life savings in HTZ, I have never felt this alive" drawing hundreds of comments. The warrant lock-up expired August 9, which may be adding to the whipsaw as short positioning gets tested. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.

Interested in Verra Mobility Corp? Here are five stocks we like better. Second-quarter results exceeded expectations: Revenue growth in Government Solutions and Commercial Services, stronger collections and improved operations helped drive $111 million in adjusted EBITDA and $33 million in free cash flow. However, Verra Mobility recorded a $48 million GAAP net loss after a $104 million non-cash impairment charge tied to T2 Systems. Rental-car contract renewals reduced the outlook: New seven-year and five-year agreements with Avis Budget Group and Hertz provide longer-term visibility but carry less favorable pricing and flexible fleet-volume terms. Verra Mobility now expects 2026 revenue of $945 million-$965 million and adjusted EBITDA of $360 million-$370 million. Growth investments and restructuring continue: The company was selected for automated speed-enforcement programs in Los Angeles and all six California cities authorized under AB 645, while pursuing an expected $20 million in annualized cost savings. Management is prioritizing cash preservation and balance-sheet strength despite having $66 million remaining under its share-repurchase authorization. 3 Stocks You’ll Love to Own, But Hate To Encounter Verra Mobility (NASDAQ:VRRM) reported second-quarter results that exceeded its internal expectations, supported by New York City camera-installation timing, operational improvements and stronger collections in its Commercial Services segment. However, the company lowered its full-year outlook after renewing major rental-car customer agreements on terms that Chief Financial Officer Craig Conti said were materially less favorable than prior contracts. The company announced a new seven-year tolling and violation-services agreement with Avis Budget Group and a new five-year agreement with Hertz. The Avis agreement follows a termination notice received in May, while the Hertz renewal was completed ahead of its expected 2027 renegotiation period. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Verra Mobility Stock Has Returned Back to the Station “Together, the ABG and Hertz agreements represent meaningful progress towards stabilizing our Commercial Services customer base,” Interim Chief Executive Officer Jon Keyser said. He said the agreements reflect the company’s technology, integrations, operating scale and efforts to establish more flexible, customer-focused partnerships. Government Solutions service revenue increased 17% year over year in the second quarter, driven by New York City camera installations and 8% service-revenue growth outside New York City. Within New York City, service revenue rose 36% from a year earlier as incremental camera installations exceeded the impact of revised contract pricing, Conti said. → 3 Drone Stocks That Should Soar After the Summer Slump If You Hate Speed Cameras, Then You’ll Like Verra Mobility Stock Verra Mobility had experienced weather-related delays in New York City installations during the first quarter, but Conti said the company caught up during the second quarter and returned to its anticipated installation level by the end of the first half. Commercial Services revenue rose 6% year over year, including a 5% increase in rental-car tolling revenue and 3% growth in fleet-management revenue. Rental-car tolling growth was driven by product adoption and tolling activity despite a 1% decline in U.S. travel volume compared with the prior-year quarter. Commercial Services profit margin expanded 100 basis points, aided by operating leverage and lower bad-debt expense from improved collections. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Parking Solutions generated $20 million in revenue and roughly $2 million in segment profit. SaaS and services sales rose approximately 1%, while product revenue was effectively flat. Segment margins declined 465 basis points year over year because of product-sales mix and the timing of operating expenses. Consolidated adjusted EBITDA was $111 million. GAAP net loss was $48 million, reflecting a $104 million non-cash goodwill and intangible-asset impairment charge related to T2 Systems. GAAP diluted loss per share was $0.32, compared with income of $0.24 per share a year earlier. Adjusted EPS was $0.38, compared with $0.34 in the second quarter of 2025. Operating cash flow was $56 million, while free cash flow totaled approximately $33 million. Government Solutions recorded $25 million in new annual recurring revenue and contract awards during the quarter, including work-zone speed and school-bus stop-arm programs. Over the trailing 12 months, new incremental annual recurring revenue bookings totaled about $74 million. Keyser said Verra Mobility was selected as the automated speed-safety vendor for Los Angeles and is negotiating the final contract. He said the company expects approximately $10 million in annual recurring revenue from the agreement once finalized. California Assembly Bill 645 authorized speed-enforcement pilots in six cities. Keyser said Verra Mobility has been selected as technology partner by all six cities authorized under the legislation. The company also cited safety outcomes from existing programs, including a 28% reduction in red-light violations within the first 60 days of San José’s program and a nearly 50% decline in traffic fatalities in Merced. Conti said the Avis Budget and Hertz agreements provide longer contractual visibility but carry lower pricing than the prior arrangements and permit customers to modulate fleet volumes. The new commercial terms took effect immediately. Verra Mobility now expects 2026 total revenue of $945 million to $965 million and adjusted EBITDA of $360 million to $370 million, implying an adjusted EBITDA margin of about 38%. The company forecast adjusted EPS of $1.11 to $1.17 and free cash flow of $105 million to $115 million. The free-cash-flow outlook includes higher capital spending than previously anticipated, primarily for Government Solutions implementation work tied to the accelerated Los Angeles Metro contract award and school-bus stop-arm awards. The company also expects a $30 million working-capital use, largely related to rental-car contract renewals and the timing of New York City installation expenditures and collections. Commercial Services revenue is now expected to decline in the negative high-single-digit range for the full year compared with 2025, as growth decelerates in the third and fourth quarters. The company expects full-year Commercial Services segment margins in the low 60% range. Government Solutions is expected to produce total revenue growth at the high end of the mid-single-digit range for 2026. The company continues to expect segment profit margins to contract by roughly 450 to 500 basis points from 2025, largely due to New York City pricing adjustments and subcontractor requirements. Parking Solutions revenue is projected to rise low to mid-single digits, with margins slightly accretive to 2025. Keyser said Verra Mobility has reorganized its customer-facing operations, appointing Stacey Moser as chief customer officer and unifying sales, account management and marketing leadership across its major commercial and government businesses. The company is also pursuing approximately $20 million in annualized cost reductions, with full run-rate savings expected beginning in 2027. Conti said the principal headcount actions have been completed, while the company continues to examine non-labor spending, procurement, third-party costs, roadside customer service and operational processes. Verra Mobility ended the quarter with approximately $1 billion in net debt and net leverage of 2.4 times. Its credit revolver was fully repaid and undrawn at quarter-end. The company had $66 million remaining under its $250 million share-repurchase authorization, though Conti said the current priority is strengthening the balance sheet and building cash reserves. Management is also evaluating whether its evolving organizational structure could result in changes to operating and reportable segments, potentially including reporting as a single operating and reportable segment. No reporting changes were made for the second quarter. Verra Mobility, traded on the Nasdaq under the ticker VRRM, is a leading provider of smart mobility solutions designed to improve safety, efficiency and compliance for transportation authorities and commercial fleets. The company develops and operates automated traffic enforcement systems, toll and violation management platforms, and connected-vehicle services. Through its technology offerings, Verra Mobility helps public agencies enhance road safety, reduce congestion and streamline revenue collection for tolling and parking. Verra Mobility’s core products include red-light and speed-camera enforcement programs, license plate recognition systems, and cloud-based violation processing software. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Verra Mobility Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Avis Budget Group, Inc. CAR reported dismal second-quarter 2026 results. CAR’s earnings of 98 cents per share missed the Zacks Consensus Estimate of $2.16 by 54.6%. Earnings improved sharply from 10 cents in the year-ago quarter. Revenues declined 1.3% year over year to $3 billion, missing the consensus estimate of $3.08 billion by 2.8%. Lower rental days weighed on the top line, while disciplined fleet reductions helped lift total vehicle utilization to a second-quarter record of 72.6%. Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote The lower-than-expected earnings and revenue results dragged the stock down 16.5% since the earnings release on July 28. Avis Budget generated net income of $63 million compared with $5 million in the prior-year quarter. Net income attributable to the company was $35 million, up from $4 million a year earlier. Adjusted EBITDA increased 3.2% year over year to $286 million. The improvement came despite lower revenues, reflecting reduced fleet costs, better utilization and tighter expense management. Total rental days fell 2.3% year over year to 43.91 million. The average rental fleet declined 4.9% to 664,638 vehicles as management accelerated vehicle dispositions in response to weakening booking trends. Revenues per day increased 1% to $68.29. Excluding currency effects, revenues per day were $67.84, up slightly from $67.62 in the year-ago quarter. Management prioritized longer-duration rentals, which carried lower daily rates but offered better transaction economics and reduced handling costs. Americas revenues declined 1.9% year over year to $2.29 billion. Rental days decreased 2.1% to 32.60 million, while the average fleet contracted 5.4% to 489,192 vehicles. Americas adjusted EBITDA rose 7.7% to $237 million. Vehicle utilization improved 2.5 percentage points to a record 73.2%, helping offset lower volumes. Revenue per day, excluding currency effects, inched up to $70.22 from $70.03. International revenues were $710 million, nearly flat year over year. Excluding exchange-rate effects, revenues declined 2.5% as rental days fell 2.9% to 11.31 million. Adjusted EBITDA decreased 11% to $73 million. Management cited weaker commercial demand, lower inbound travel and increased industry fleet supply in several European markets. International revenues per day rose 3.4% as reported, but inched up 0.4% excluding currency effects. Vehicle depreciation and lease charges declined 8.3% year over year to $583 million. Total per-unit fleet costs fell 3.6% to $292 per month and decreased 4.3% to $290 excluding currency effects. Operating expenses remained flat at $1.53 billion. Selling, general and administrative expenses declined 2.8% to $385 million, while vehicle interest expenses increased slightly to $232 million. Corporate interest expenses decreased to $108 million from $110 million. CAR ended June with $558 million in cash and cash equivalents. Available liquidity was approximately $1 billion, with an additional $1.9 billion in fleet funding capacity. During the quarter, the company issued $300 million of senior notes due in 2031 and used the proceeds to reduce notes due in 2027. It also refinanced its $2-billion revolving credit facility, extending the maturity to June 2031. Net corporate leverage stood at 7.4 times, down one turn from the end of 2025. Avis Budget reiterated its full-year adjusted EBITDA guidance of $850 million to $1 billion. Management expects to reduce leverage by at least one full turn by the end of 2026. For the third quarter, the company expects the Americas fleet to remain down by a mid-single-digit percentage. Stronger utilization should partly offset the fleet reduction, while revenues per day are projected to remain roughly flat year over year. Management expects year-over-year adjusted EBITDA growth despite continued pressure on rental volumes. Avis Budget carries a Zacks Rank #5 (Strong Sell) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Verisk VRSK reported second-quarter 2026 diluted adjusted earnings of $1.98 per share, beating the Zacks Consensus Estimate of $1.94 by 2.1%. The figure increased 5.3% from the year-ago quarter. Revenues of $806.3 million topped the consensus mark of $802.4 million by 0.5% and rose 4.3% year over year. ADP ADP posted fourth-quarter fiscal 2026 adjusted earnings of $2.64 per share, beating the Zacks Consensus Estimate of $2.59 by 1.9%. The metric increased 17% from the year-ago quarter. Revenues of $5.47 billion surpassed the consensus mark of $5.42 billion by 0.9% and rose 7% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Avis Budget Group’s second-quarter 2026 results showed sales of US$2,998 million versus US$3,039 million a year earlier, while net income rose to US$35 million and diluted EPS from continuing operations reached US$0.98, up from US$0.10. Despite this year-on-year EPS improvement, the company missed Wall Street forecasts and highlighted pressures from softer Americas travel demand, fleet reductions and more than US$50 million in recall-related costs so far this year. We’ll now examine how this earnings miss, particularly the recall-driven cost burden, reshapes Avis Budget Group’s investment narrative and outlook. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. To own Avis Budget Group, you need to believe the company can turn its large global rental footprint, premium Avis First rollout and tech investments into steadier profits, despite its cyclical travel exposure and leveraged balance sheet. The latest quarter’s recall-driven costs and softer Americas demand weigh on the near term, but the key catalyst remains execution on higher-margin offerings, while the biggest immediate risk is further operational or fleet disruptions that pressure already thin earnings. In that context, management’s decision to reiterate full year adjusted EBITDA guidance of US$850 million to US$1,000 million, while absorbing more than US$50 million in recall-related costs, stands out. It links directly to the premiumization and efficiency story behind Avis First and digital fleet management, but also underlines how sensitive the earnings path is to fleet quality, utilization and any additional, unplanned vehicle-related headwinds. Yet beneath the premium and technology upside, investors should be aware of how high leverage and ongoing capital needs could quickly amplify any further recall or demand shock... Read the full narrative on Avis Budget Group (it's free!) Avis Budget Group's narrative projects $12.5 billion revenue and $638.8 million earnings by 2029. Uncover how Avis Budget Group's forecasts yield a $134.14 fair value, a 13% downside to its current price. Some of the most optimistic analysts were banking on revenue reaching about US$13.1 billion and earnings of roughly US$472 million by 2029, yet Q2’s recall costs and travel softness highlight how uncertain that path is, especially if high leverage and major fleet spending keep biting into the cash those forecasts assume. Explore 3 other fair value estimates on Avis Budget Group - why the stock might be worth over 3x more than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Avis Budget Group research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision. Our free Avis Budget Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Avis Budget Group's overall financial health at a glance. Our top stock finds are flying under the radar-for now. Get in early: Uncover the next big thing with 20 elite penny stocks that balance risk and reward. This technology could replace computers: discover 26 stocks that are working to make quantum computing a reality. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CAR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Avis Budget Group, Inc.? Here are five stocks we like better. Avis Budget reduced its Americas fleet by 5% year over year as travel demand softened, prioritizing utilization, transaction profitability and returns over rental-day growth. Utilization reached a record second-quarter 73.2%, limiting the decline in rental days to 2%. Americas adjusted EBITDA rose 7.7% despite a 1.9% revenue decline, but recalls remained a major headwind, costing more than $50 million year to date. International operations weakened, with adjusted EBITDA down 11% amid lower inbound travel and increased European fleet supply. Avis Budget reiterated full-year adjusted EBITDA guidance of $850 million to $1 billion and expects to reduce leverage by at least one full turn by year-end. The company also anticipates receiving $650 million from its Pentwater settlement, subject to court approval, to help retire debt due in 2027. MarketBeat Week in Review – 04/27 - 05/01 Avis Budget Group (NASDAQ:CAR) said it adjusted its fleet strategy during the second quarter of 2026 as travel demand softened from earlier expectations, reducing vehicle supply and emphasizing utilization, transaction profitability and returns over rental-day growth. Chief Executive Officer Brian Choi said summer bookings had been showing mid-single-digit growth entering April, but forward-booking momentum weakened by early May. The company accelerated vehicle dispositions during April and early May, when the used-vehicle market was still seasonally strong, rather than wait for weaker demand trends to become more pronounced. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Avis Short Squeeze Shocked the Market: Are These 3 Stocks Next? The Americas fleet ended the quarter down 5% year over year, marking the company’s lowest second-quarter fleet size since the second quarter of 2021. The original plan had contemplated fleet growth tied to expected travel activity around the World Cup, America 250 and a stronger summer travel market, Choi said. Choi cited broader consumer uncertainty, higher travel costs and geopolitical volatility. TSA check-ins moved from flat year-over-year in April to down 0.7% in May and down 1.3% in June, while overseas visitors to the U.S., based on CBP I-94 data, declined 8% during the quarter. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? The Trade Desk: Down 75%, But a Reversal May Be Near Despite the smaller Americas fleet, rental days declined only 2%, aided by improved utilization. Americas vehicle utilization reached 73.2%, the company’s highest second-quarter level on record, according to Choi. He attributed the improvement to technology deployments, operating discipline and a greater focus on fleet as capital at risk. Chief Financial Officer Daniel Cunha said Americas adjusted EBITDA increased 7.7% year over year while revenue declined 1.9%, producing roughly 100 basis points of margin expansion. Rental days fell 2.1%, reflecting a fleet that was 5.4% smaller year over year, while inbound rental days declined 5%. → Innovative ETF Strategies That Are Paying Off This Summer Americas utilization improved 250 basis points year over year. Cunha said the company’s operating performance came despite continued recall-related constraints. The company chose to prioritize longer-duration rentals over some one-day transactions, which tend to generate higher revenue per day, or RPD. Choi said the approach reduced handling costs and operational complexity while improving overall transaction economics. Revenue per transaction rose 6% year over year, while Americas RPD was essentially flat. Excluding changes in rental-length mix and other mix shifts, the company said Americas RPD would have increased about 3%. Cunha said RPD excluding foreign-exchange effects rose 0.2% in the Americas. The company recorded two consecutive quarters of positive global RPD growth for the first time in 12 quarters, and consecutive quarterly RPD growth in the Americas for the first time in 16 quarters. Recall campaigns remained a material cost and utilization headwind. Cunha said recalls in July 2025 had grounded about 4.6% of the fleet at their peak, and new recalls announced by three original equipment manufacturers in April 2026 resulted in approximately 18,000 grounded vehicles. That exceeded the roughly 15,000 grounded vehicles at the end of 2025. Year-to-date recall costs exceeded $50 million before lost profit, Cunha said. The company expects recall costs during the remainder of 2026 to be slightly more than half of the first-half impact, assuming parts become available at the rates promised by manufacturers. The company’s accelerated vehicle dispositions also affected depreciation. Per-unit depreciation was $301 in the quarter, which Cunha said was unusually low because of elevated sales activity. Under a more normalized sales pattern, the company estimated per-unit depreciation would have been approximately $320. International operations faced a more difficult environment. Revenue excluding exchange-rate effects declined 2.5% year over year, while adjusted EBITDA fell 11%. Rental days declined 2.9%, including a 10% drop in strategic accounts. Cunha said geopolitical tensions in the Middle East pressured inbound European travel, with flight capacity down as much as 38% in April and May. International RPD rose 0.4% excluding exchange rates, or 2.2% excluding the suspended Zipcar UK operations. Increased fleet supply in several major European markets also pressured pricing, with vehicle registrations rising more than 10% in several of the company’s largest markets. As of June 30, Avis Budget had more than $1 billion of available liquidity and about $1.9 billion of fleet funding capacity. Its net corporate leverage ratio was 7.4 times, down 100 basis points from year-end 2025. The company expects to reduce leverage by at least one full turn of adjusted EBITDA by the end of 2026. During the quarter, the company issued $300 million of senior notes due in 2031 and used proceeds to partially redeem notes due in 2027, reducing that maturity from $650 million to $350 million. It also extended the maturity of its $2 billion revolving credit facility from December 2028 to June 2031 and added a temporary $200 million facility. The company expects to receive $650 million in cash under its short-swing profit settlement with Pentwater, subject to final court approval. Choi said the company expects the matter to be resolved by year-end. Avis Budget plans to use part of the proceeds to retire the remaining $350 million of senior notes due in 2027. Avis Budget reiterated its full-year adjusted EBITDA guidance of $850 million to $1 billion. Choi said the Americas fleet is expected to remain down by a similar mid-single-digit percentage in the third quarter, with utilization improvements offsetting some of the impact on rental days. The company expects RPD to be roughly flat year over year as it continues to favor longer-duration, higher-value transactions. The company also reported progress in autonomous vehicle operations and premium rentals. Choi corrected an earlier statement during the call, saying Avis Budget assumed operational responsibility for Waymo’s Dallas ride-hail operations in June, rather than July. The company is responsible for vehicle maintenance, uptime, charging and real-estate infrastructure, while Waymo handles the technology and customer acquisition. In addition, Avis First, the company’s premium rental offering, expanded to Orlando, Washington Dulles, London Heathrow and Paris Charles de Gaulle. Choi said the program added select Mercedes and BMW models and has maintained an average customer rating of 4.9 out of five stars. Avis Budget Group, Inc operates as a leading global provider of vehicle rental and mobility solutions. Through its two core brands, Avis® and Budget®, the company offers a broad range of rental options including daily, weekly and monthly car rentals for leisure and business travelers. In addition to traditional airport and off-airport car rental services, Avis Budget Group delivers innovative mobility platforms such as car-sharing programs and connected fleet solutions designed to meet the evolving needs of corporate, government and individual customers. The company's roots trace back to Avis Rent a Car, founded in 1946, and Budget Rent a Car, established in 1958. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Avis Budget Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: Declined 1.9% year-over-year in the Americas. Adjusted EBITDA: Grew 7.7% year-over-year in the Americas; highest second quarter adjusted EBITDA margin in the last three years. Fleet Size: Americas fleet down 5% year-over-year. Rental Days: Declined 2% in the Americas. Vehicle Utilization: Reached 73.2% in the Americas, highest second quarter utilization level in company history. Revenue Per Transaction: Increased 6% year-over-year. RPD (Revenue Per Day): Essentially flat year-over-year; would have been up nearly 3% without mix shift. Net Corporate Leverage Ratio: 7.4 times, down 100 basis points since year-end 2025. Liquidity: More than $1 billion in available liquidity and approximately $1.9 billion of fleet funding capacity. Settlement Agreement: $650 million in cash from Pentwater settlement, subject to final court approval. Full-Year Adjusted EBITDA Guidance: Reiterated at $850 million to $1 billion. Warning! GuruFocus has detected 8 Warning Signs with CAR. Is CAR fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Avis Budget Group Inc (NASDAQ:CAR) achieved record second quarter utilization globally, with the Americas reaching the highest second quarter utilization level in company history at 73.2%. The company reported a 7.7% year-over-year growth in adjusted EBITDA in the Americas, despite a 1.9% decline in revenue, demonstrating strong operational leverage. Avis Budget Group Inc (NASDAQ:CAR) successfully reached a settlement agreement with Pentwater, resulting in a $650 million cash recovery, which is expected to benefit shareholders. The partnership with Waymo has progressed with the launch of autonomous ride-hail operations in Dallas, marking a significant milestone in their autonomous vehicle strategy. Avis First, the premium rental offering, continues to expand and gain traction, with high customer satisfaction ratings and expansion to major airport locations. The company faced a softer-than-expected demand environment, with rental days in the Americas declining by 2.1% year-over-year. International segment revenues declined by 2.5% year-over-year, with adjusted EBITDA down 11%, pressured by higher variable costs and a challenging operating environment. Avis Budget Group Inc (NASDAQ:CAR) experienced significant recall-related constraints, grounding approximately 18,000 vehicles, which represented over $50 million in costs year-to-date. The company had to adjust its fleet strategy due to a decline in forward bookings, resulting in a 5% reduction in fleet size year-over-year, the lowest since the COVID-19 pandemic. Despite efforts to optimize transaction economics, revenue per day (RPD) remained flat year-over-year, indicating challenges in achieving pricing growth. Q: Given the lower demand environment, is there anything Avis Budget Group can do to further manage costs on the operating side? A: Brian J. Choi, Executive Vice President & Chief Financial Officer, emphasized that cost discipline is foundational to Avis Budget Group's operations. The company has tightened its belt on core operating costs while continuing to invest in future growth areas like technology. This balanced approach helps fund investments while monitoring the revenue environment. Q: With the rollout of autonomous vehicles (AV) in Dallas, is Avis Budget Group considering purchasing AVs or maintaining fleet management on someone else's balance sheet? A: Brian J. Choi stated that the decision on purchasing AVs is not being accelerated. The company is developing relationships with AV providers and vehicle manufacturers to keep both options open, whether managing a fleet on someone else's balance sheet or purchasing the vehicles themselves. Q: How does Avis Budget Group view the current competitive environment, especially with one competitor facing liquidity questions? A: Brian J. Choi noted that the company observed a decline in international inbound travelers and adjusted its fleet accordingly. Avis Budget Group made early decisions to reduce fleet size and capitalize on residual gains, and they believe the supply-demand dynamics are better aligned now than earlier in the year. Q: Can you provide more details on the technology investments that have enabled Avis Budget Group to maintain high utilization rates despite weaker demand? A: Brian J. Choi explained that Avis Budget Group has overhauled its tech stack to improve fleet visibility and management. The new platform, which is implemented in over 90% of the Americas fleet, allows for efficient decision-making and minimizes unrentable days, contributing to improved utilization. Q: What is Avis Budget Group's outlook for the used vehicle market, and how would the company respond if used vehicle prices moderate while demand remains subdued? A: Brian J. Choi indicated that the used vehicle market appears stable and in line with expectations. Avis Budget Group plans conservatively, building a cushion into the fleet to manage potential declines in demand. The company uses technology to decide which vehicles to hold or sell, ensuring financial health and flexibility. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

With the exception of a brief pop during a meme-stock craze, Avis Budget Group (Nasdaq: CAR) has had a relatively quiet year. The company faces a challenging competitive landscape as ridesharing continues to proliferate, and autonomous vehicles like Waymo threaten to render traditional car rentals obsolete, creating an overhang in the industry. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » In its second quarter, revenue fell 1% to $3 billion, short of estimates of $3.11 billion. Despite the slide in revenue and the double-digit after-hours decline in the stock following the results, the company made progress in some areas. Vehicle utilization rose 1.9 points from the quarter a year ago to 72.6% and 2.5 points in the Americas to 73.2%, record second-quarter highs for the company. It also lowered per-unit fleet costs by 4% to $290 per month, both of which show the business becoming more efficient, a key strategic goal for Avis. The company also kicked off an autonomous vehicle partnership with Waymo, completing thousands of trips in its first month, helping ensure it will remain relevant in the age of AVs. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 3% to $286 million, and the cutback in expenses, including vehicle depreciation and restructuring expenses, led to generally accepted accounting principles (GAAP) earnings per share jumping from $0.10 to $0.98. While that was a strong improvement, it still missed analyst estimates at $1.91. Management acknowledged that booking trends weakened in the quarter, and the company trimmed its fleet accordingly. Image source: The Motley Fool. Avis stock tumbled 13% after hours on the earnings miss, but investors seem to be missing the bigger picture here. A weak macroeconomic climate was the reason for the underwhelming results, as a sluggish travel market may be due to inflation, but travel demand is outside of the company’s control. However, Avis is executing effectively in the areas under its control, lifting vehicle utilization rates to records for the second quarter, lowering per-unit costs, and driving a surge on the bottom line. Still, investors seemed disappointed by a decline of more than 3 million available rental days, reflecting a shrinking fleet. Revenue per vehicle was flat, and it did not offer any guidance, leaving investors in the dark. CEO Brian Choi took over in early 2025, promising to focus on the bottom line rather than chasing growth, and that shift has paid off: the company has significantly reduced vehicle depreciation costs from a year ago, cutting its GAAP loss in half in the first half of the year. Avis is also outperforming rival Hertz on the balance sheet and in operational efficiency, a clear win. Avis looks like it’s on the right track, but it’s too soon in its turnaround to call the stock to buy. I’d like to see some stabilization in the rental market and continued margin improvement. Analysts expect earnings per share of $3.41 this year and $7.82 the following year. If it can hit those numbers and continue to deliver margin improvement, the stock should move higher, but I’d like to see its progress over the next two quarters first. Before you buy stock in Avis Budget Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Avis Budget Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!* Now, it’s worth noting Stock Advisor’s total average return is 886% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 29, 2026. Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Is Avis Budget Group a Buy After Its Latest Earnings Report? was originally published by The Motley Fool

Avis Budget Group (CAR) came out with quarterly earnings of $0.98 per share, missing the Zacks Consensus Estimate of $2.16 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -54.63%. A quarter ago, it was expected that this car rental company would post a loss of $6.82 per share when it actually produced a loss of $8.01, delivering a surprise of -17.45%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Avis Budget, which belongs to the Zacks Transportation - Services industry, posted revenues of $3 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 2.83%. This compares to year-ago revenues of $3.04 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Avis Budget shares have added about 27.6% since the beginning of the year versus the S&P 500's gain of 8.3%. While Avis Budget has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Avis Budget was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $9.92 on $3.58 billion in revenues for the coming quarter and $2.91 on $11.93 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Services is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Proficient Auto Logistics, Inc. (PAL), another stock in the same industry, has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -14.3%. The consensus EPS estimate for the quarter has been revised 16.7% lower over the last 30 days to the current level. Proficient Auto Logistics, Inc.'s revenues are expected to be $108.53 million, down 6.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report Proficient Auto Logistics, Inc. (PAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research