Avis Budget Group beats Q3 estimates but profit and sales hit by pandemic effect on travel

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Avis Budget Group Inc. shares jumped 4% in after-hours trade Thursday, after the rental car company topped earnings estimates for the third quarter, even as profit and revenue slid sharply as travel slowed significantly during the pandemic. The company said it had net income of $45 million, or 63 cents a share, in the quarter, down sharply from $189 million, or $2.50 a share, in the year-earlier period. Adjusted per-share earnings came to $1.13, above the 40 cents FactSet consensus. Revenue tumbled 44% to $1.534 billion from $2.763 billion, but was ahead of the $1.443 billion FactSet consensus. The company said it cut $1 billion of costs in the quarter, bringing the year-to-date total to $2 billion, and said it’s on track to cut $2.5 billion for the full year. “We remain focused on what we can control,” Chief Executive Joe Ferraro said in a statement. The company is expecting to see the normal seasonal effects in the fourth quarter, and expects the travel environment to remain challenged. Shares have gained 14% in the year to date, while the S&P 500 has gained 2.5%.
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