(Adds details, share move)
May 7 Car rental company Avis Budget Group
raised its full-year revenue and profit forecast, citing
higher car rental volumes and rates in North America, and
reported a higher-than-expected quarterly profit.
Avis, which gets more than two-thirds of its revenue from
rentals at airports, said it now expects 2014 revenue of $8.4
billion-$8.6 billion, up from its previous forcast of $8.3
The company also raised its adjusted earnings forecast to
$2.50-$2.95 per share from $2.45-$2.85.
Avis said the raised forecast reflects the purchase of a
licensee in Edmonton, which gives the company a larger share of
Canada's vehicle rental spend.
The car rental industry, tied closely to airline traffic and
hotel bookings, is being boosted by a recovery in business and
leisure travel in the United States.
Rising U.S. consumer spending and employment growth led to
higher demand for air travel in the first quarter.
North American airlines reported a 3.5 percent rise in
traffic in January, a 2 percent rise in February and a 0.6
percent rise in March, data from the International Air Transport
Association showed. (r.reuters.com/huh29v)
Avis reported a 1 percent rise in time and mileage revenue
per day - a key metric that indicates pricing - in North
Avis is the first among U.S. car rental companies to report
quarterly results. Larger rival Hertz Global Holdings Inc
said on Tuesday it was delaying reporting its quarterly
Avis posted a net income of $4 million, or 3 cents per
share, in the first quarter ended March 31, compared with a loss
of $46 million, or 43 cents per share, a year earlier.
Excluding items, Avis earned 16 cents per share.
Revenue at the car hire firm, which gets more than
two-thirds of its revenue from rentals at airports, jumped 10
percent to $1.86 billion.
Analysts on average were expecting a profit of 8 cents per
share on revenue $1.83 billion, according to Thomson Reuters
The company's shares were up 2 percent at $55 in extended
trading. They have gained about 72 percent in the past year,
compared with a 23 percent rise in the Dow Jones U.S. Leisure &
(Reporting by Ankit Ajmera in Bangalore; Editing by Rodney
Joyce and Joyjeet Das)