Avis Budget Posts Loss, Revenues Miss Street; Shares Fall 11%

(RTTNews) - Avis Budget Group Inc. (CAR) Tuesday posted a loss for the fourth quarter, hurt largely by higher operating costs and lower-than-expected revenues. Shares of the company dropped 11 percent in the after-hours trade.

Parsippany, New Jersey-based Avis Budget reported fourth-quarter loss of $5 million or $0.06 per share, compared to a profit of $23 million or $0.21 per share last year.

Adjusted earnings for the quarter dropped to $18 million or $0.18 per share from $25 million or $0.23 per share a year ago. Analysts polled by Thomson Reuters had expected earnings of $0.17 per share.

Revenues for the quarter inched up 0.5 percent to $1.90 billion from $1.89 billion last year.

Operating expenses increased to $1.01 billion from $978 million last year, while selling, general and administrative costs rose to $250 million from $247 million a year ago.

Chief Executive Larry De Shon said, "Our 2016 earnings outlook reflects incremental investments we are making in our business to enhance the customer experience we offer and expand our long-term margins."

Looking forward to the full year 2016, the company expects earnings of $2.70 to $3.30 per share and revenues $8.7 billion to $8.85 billion. Analysts currently expect earnings of $3.43 per share on revenues of $8.77 billion.

CAR closed Tuesday's trading at $29.99, up $0.30 or 1.01%, on the NYSE. The stock, however, dropped $3.29 or 10.97% in the after-hours trade.