CAR - Avis stock drives higher on big bottom line beat

Avis Budget Group ( NASDAQ: CAR ) shares accelerated in Monday’s extended session after the company’s quarterly profits impressed.

For the fourth quarter, the New Jersey-based car rental group notched $10.46 in earnings per share, $3.47 above the Street expectation. Meanwhile, a 6.5% jump in revenue from the prior year quarter to $2.77B outpaced estimates by $110M. Utilization for the quarter was 67%, which the company highlighted as a reflection of a fleet “well positioned to meet demand” heading into 2023.

He added that 2022 was a “record-setting year” for revenue, hitting $12B amid record demand, and the company expects to continue similarly strong performance in 2023. Adjusted EBITDA of $624M for the Americas in 2022 was also cited as record.

Elsewhere, management announced the approval of a $1B increase to the company’s existing share repurchase authorization.

Shares of Avis Budget Group ( CAR ) popped over 6% higher shortly after the print .

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