Avis Budget Group Q3 Profit Rises

(RTTNews) - Avis Budget Group Inc. (CAR) Wednesday reported a surge in profit the third quarter as revenues grew driven by strong volume and prices. Earnings for the quarter came in ahead of analysts' estimates but revenues fell short of expectations.

Parsippany, New Jersey-based Avis' third-quarter profit surged to 192 million or $1.74 per share from $118 million or $1.02 per share last year.

Adjusted earnings rose to $1.91 per share from $1.48 per share last year. On average, nine analysts polled by Thomson Reuters expected earnings of $1.80 per share for the quarter. Analysts' estimates typically exclude special items.

Avis' revenues for the quarter rose 6 percent to $2.54 billion from $2.40 billion last year. Analysts had a consensus revenue estimate of $2.56 billion for the quarter.

Revenue growth refelects 6 percent increase in rental days and increased pricing in North America, the company said.

"Our record third quarter results were driven by a continuation of the strong volume and pricing trends we experienced in North America in the first half of the year," said CEO Ronald Nelson. "We delivered record results in Europe this summer, and volume and pricing in North America continue to be robust, giving us confidence that 2014 will be the most profitable year in our Company's history."

Moving ahead, the company now expects adjusted earnings of $2.82 to $3.00 per share on revenues of about $8.5 billion. Analysts currently estimate earnings of $2.86 per share on revenues of $8.57 billion.

Earlier, the company expected adjusted earnings of $2.75 to $3.05 per share and revenues of $8.6 billion to $8.7 billion.