CAR - Avis Budget rallies after record-setting quarter peer Hertz gains as well

Avis Budget Group ( NASDAQ: CAR ) moved higher in after-hours trading on Monday after smashing EPS expectations with its Q3 earnings report.

Revenue was up 18% compared to a year ago to $3.5B to set a new quarterly record. Net income of $1.0B and adjusted EBITDA of $1.5B were also quarterly records.

The Americas' business paced the strong Avis Budget quarter with adjusted EBITDA coming in at $1.2B driven by the high demand and strong pricing. International revenue soared 41% to $844M against a soft comparable from a year ago.

The update from Avis Budget ( CAR ) on its balance sheet was also positive. CAR had a liquidity position at the end of the quarter of approximately $1.7B, with an additional $2.6B of fleet funding capacity. The car rental giant said it has well-laddered corporate debt and no meaningful maturities until 2024.

CEO outlook: "Despite growing concerns around an economic slowdown, our strong summer performance, driven by increased demand in both the commercial and leisure segments, carried through to September. We remain optimistic this will continue throughout the Fall and into the holiday season."

Shares of Avis Budget Group ( CAR ) rallie 4.67% in the after-hours session on Monday. Peer Hertz Global ( HTZ ) was 1.28% higher.

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