Avis Budget Group Inc. posted record first-quarter earnings, sending the stock up double digits after the market closed on Monday.
The vehicle rental firm posted an adjusted EPS of $9.99, which was in line with analysts’ expectations because rental prices in the United States were roughly identical to those in the first quarter of 2019.
Vehicle fleet costs reduced by 90%
“Despite Omicron’s effect in the first half of the quarter, our team was able to swiftly turn things around in the second quarter to manage dramatically higher demand.” “We achieved a new record first-quarter adjusted EBITDA by focusing on rigorous fleet management and continued cost optimization,” stated Joe Ferraro, CEO of Avis Budget Group.
Avis’ quarterly usage rate, which measures how much of its fleet is leased out, was 67.4 percent this quarter, up from 69.4 percent two years ago.
The company’s stock lost as much as 14 percent of its aftermarket gains on Monday, trading up 5.5 percent to $296.06 a share in New York. This year, the stock has increased by 35%.