Avis Budget Group (NASDAQ:CAR) is up over 5% ahead of Thursday's open after reporting earnings for its latest quarter, which topped consensus expectations.
The car rental company reported Q3 EPS of $16.78 after the close on Wednesday, $2.54 better than the analyst estimate of $14.24. Revenue for the quarter came in at $3.6 billion, just above the consensus estimate of $3.59 billion.
Avis said its revenue performance was driven by peak demand and seasonal revenue per day increases. Rental days rose by 5% during the quarter.
Furthermore, CAR's adjusted EBITDA in the Americas was $740 million, driven by strong demand and a seasonal revenue per day increase, while International adjusted EBITDA was $196 million, driven by "peak demand."
“We had record volume in the Americas with anticipated seasonal price improvements transitioning from the second to the third quarter,” said Joe Ferraro, Avis' CEO. “October started off strong and we expect it to continue throughout the holiday season.”