DOW JONES NEWSWIRES
Avis Budget Group Inc. (CAR) doubled its second-quarter
earnings, helped by a sharp jump in international car-rental
revenue.
Shares popped 3.9% to $14.82 after hours as results far exceeded
analyst expectations.
Avis Budget's profitability has been improving more than a year
now due to better travel trends and lower fleet costs. The company
has also credited its focus on productivity and expense management
for lifting the bottom line.
The company and Hertz Global Holdings Inc. (HTZ) are both
pursuing a takeover of Dollar Thrifty Automotive Group Inc. (DTG),
which has said it is cooperating with both companies as they seek
regulatory approval for their rival offers.
Avis posted a profit of $52 million, or 42 cents a share, up
from $26 million, or 22 cents a share, a year earlier. Excluding
transaction-related expenses, per-share earnings jumped to 63 cents
from 25 cents.
Net revenue increased 9.1% to $1.41 billion. Analysts surveyed
by Thomson Reuters predicted per-share earnings of 33 cents on
revenue of $1.36 billion.
In the U.S., car-rental revenue improved 7.5%. International
car-rental revenue jumped 20%, helped by an increase in rental
days.
-By Joan E. Solsman and Mia Lamar, Dow Jones Newswires;
212-416-2291; joan.solsman@dowjones.com