Avis Budget Group Stock Declines 21.8% Since Reporting Q4 Loss

Avis Budget Group CAR reported unimpressive fourth-quarter 2025 results, with both earnings and revenues significantly missing the Zacks Consensus Estimate.The stock has plummeted 21.8% since the release of results on Feb. 18, reflecting the heavy loss incurred during the reported quarter.The company announced fourth-quarter adjusted loss of $6.53 per share, which was 2151.7% and 2739.1% wider than the consensus estimate and the year-ago reported figure, respectively. Revenues of $2.66 billion missed the consensus mark by 3% and declined 1.7% from the year-ago quarter.Weak demand for rental cars with lower rental days, especially in the United States, resulted in reduced gains on vehicles sold and a lower valuation mark on CAR’s retained fleet during the fourth quarter. Additionally, the declining rental index price per vehicle metric, especially in November 2025, hurt the company the most, leading to the steep bottom-line dip.Avis Budget Group, Inc. Price, Consensus and EPS Surprise Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. QuoteAvis Budget’s Segmental RevenuesRevenues from the Americas amounted to $2.04 billion, reflecting a 3.6% decline from the year-ago quarter’s reported figure. The metric lagged our estimate of $2.13 billion.International revenues were $624 million, increasing 5.2% year over year and beating our estimation of $612.1 million.CAR’s ProfitabilityAdjusted EBITDA was $5 million against a loss of $101 million in the year-ago quarter. The Americas segment reported adjusted EBITDA of $1 million. Internationally, adjusted EBITDA was $21 million.Key Balance Sheet & Cash Flow FiguresAvis Budget exited the fourth quarter of 2025 with cash and cash equivalents of $519 million compared with $564 million at the end of the third quarter of 2025. Corporate debt was $6 billion, flat sequentially.CAR generated $437 million in net cash from operating activities during the quarter. The adjusted free cash flow utilized was $119 million. Capital expenditure was $82 million.Q1 and 2026 GuidanceCAR expects fleet costs per month to be $400 per unit for the first quarter of 2026 and between $320 and $330 per unit for full-year 2026. The company guided EBITDA to be between $800 million and $1 billion for 2026.CAR currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Earnings SnapshotsTrane Technologies TT reported impressive fourth-quarter 2025 results. TT’s quarterly earnings of $2.86 per share beat the Zacks Consensus Estimate by 1.4% and increased 9.6% from the year-ago quarter.TT’s total revenues of $5.1 billion surpassed the consensus estimate by 1.3% and rallied 5.5% from the year-ago quarter.Booz Allen Hamilton BAH registered mixed results for third-quarter fiscal 2026. BAH’s earnings per share of $1.77 beat the consensus mark by 40.5% and increased 14.2% from the year-ago quarter.BAH’s revenues of $2.6 billion missed the Zacks Consensus Estimate by 3.9% and declined 10.2% from the year-ago quarter.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avis Budget Group, Inc. (CAR): Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH): Free Stock Analysis Report Trane Technologies plc (TT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks