Avis Budget Group Inc (NASDAQ:CAR) Surpasses Q3 Earnings Estimates, Stock Rises

Avis Budget Group Inc (NASDAQ:CAR) reported third-quarter financial results that surpassed analyst expectations, driving significant after-hours market enthusiasm for the car rental company's stock.

Quarterly Performance Versus Estimates

The company delivered a strong financial performance for the third quarter of 2025, exceeding Wall Street projections on both top and bottom lines. Revenue reached $3.52 billion, a modest 1.1% increase year-over-year but above the $3.49 billion analysts had anticipated. The earnings beat was particularly notable, with non-GAAP earnings per share of $10.11 coming in substantially higher than the $8.12 estimate.

Key financial metrics from the quarter include:

• Revenue: $3.52 billion (estimated: $3.49 billion)
• Non-GAAP EPS: $10.11 (estimated: $8.12)
• Net income: $360 million
• Adjusted EBITDA: $559 million, up 11% from the same period last year

Market Reaction

Investors responded positively to the earnings surprise, with the stock rising approximately 4.5% in after-hours trading following the announcement. This immediate market reaction suggests investors were encouraged by the company's ability to exceed expectations despite a competitive rental car environment. The positive movement contrasts with the stock's performance over the past month, which had seen a slight decline of about 2.6%.

Operational Highlights

The earnings release highlighted several important operational achievements during the quarter. Management emphasized progress in returning to revenue growth while continuing strategic investments in the company's future. The company's operational performance showed distinct regional patterns, with the Americas and International segments demonstrating different strengths.

Notable operational metrics include:

• Americas segment Adjusted EBITDA of $398 million, up from $384 million last year
• International segment Adjusted EBITDA of $190 million, a significant increase from $139 million in Q3 2024
• Rental days increased 1% compared to the third quarter of 2024
• Revenue per day, excluding exchange rate effects, decreased 1%
• Liquidity position of nearly $1.0 billion at quarter's end with additional $1.9 billion of fleet funding capacity

Looking Ahead

While the company did not provide specific forward guidance in its earnings release, analyst estimates for the full year 2025 project revenue of approximately $11.79 billion. For the upcoming fourth quarter, analysts are anticipating revenue of around $2.77 billion. The company's continued focus on fleet cost management and operational efficiency appears to be contributing to its improved profitability despite mixed performance in rental volume and pricing metrics.

The company's CEO, Brian Choi, commented on the results, stating, "This quarter marked meaningful progress for Avis Budget Group as we returned to revenue growth while continuing to invest in our future. We remain focused on leading the industry through innovation and a steadfast commitment to delivering an exceptional customer experience."

For more detailed earnings information and future estimates, view the complete earnings and estimates data for Avis Budget Group.

Disclaimer: This article is not investment advice. Investors should conduct their own research and consult with financial advisors before making investment decisions.