July 31 Car rental company Avis Budget Group
raised its full-year revenue and profit forecast as
demand rose in North America and the company raised prices.
Shares of Avis, which posted a profit for the second
quarter, rose 4 percent to $60.50 after the bell.
The company raised its full-year profit forecast to
$2.75-$3.05 per share from $2.50-$2.95 earlier and revenue
expectation to $8.6-$8.7 billion from $8.4-$8.6 billion earlier.
Avis, which gets more than two-thirds of its revenue from
rentals at airports, expects rental days to rise by 5-7 percent
in North America and pricing to increase by about 2 percent this
Analysts on average were expecting full-year profit of
$2.88 per share on revenue of $8.49 billion, according to
Thomson Reuters I/B/E/S.
The car rental industry is tied closely to airline traffic
and hotel bookings. Major U.S. airlines reported higher profit
in the quarter, driven by increased prices and demand while
hotels occupancy rose.
Avis reported a 3 percent rise in time and mileage revenue
per day - a key metric that indicates pricing - in North
The company reported net profit of $26 million, or 24 cents
per share, for the second quarter ended June 30, compared with a
loss of $28 million, or 26 cents, a year earlier.
Excluding items, Avis earned 68 cents per share.
Revenue rose 10 percent to $2.19 billion.
Analysts had expected a profit of 61 cents per share on
revenue of $2.13 billion.
(Reporting by Rohit T. K. in Bangalore; Editing by Sriraj