Avis Budget Stock Declines 22% Since Reporting Q2 Earnings Miss

Avis Budget Group, Inc. CAR reported narrower-than-expected second-quarter 2025 results.

The company’s adjusted earnings per share of 10 cents missed the Zacks Consensus Estimate by 95.1% and decreased 75.6% from the year-ago quarter. Revenues of $3 billion lagged the consensus estimate by a slight margin. The metric declined marginally year over year.

The stock witnessed a 21.9% decline since the earnings release on July 29 in response to dismal earnings and revenue results.

CAR shares have surged 97.5% in the year-to-date period compared with the industry’s decline of 3.3% and the Zacks S&P 500 composite’s growth of 7.3%.

Avis Budget’s Segmental Revenues

Revenues from the Americas amounted to $2.3 billion, indicating a 1% decline from the year-ago quarter’s reported figure. The metric missed our estimate of $2.4 billion.

International revenues were $707 million, declining 3% on a year-over-year basis. The figure missed our estimation of $698.2 million.

CAR’s Profitability

Adjusted EBITDA was $277 million, up 29% from the year-ago quarter’s actual. The Americas segment reported adjusted EBITDA of $220 million, increasing 18% year over year. Internationally, adjusted EBITDA was $82 million, surging 71% from the year-ago quarter.

Balance Sheet & Cash Flow of CAR

Avis Budget exited the second quarter of 2025 with cash and cash equivalents of $541 million compared with $516 million at the end of the first quarter of 2025. Corporate debt amounted to $6.1 billion compared with $5.9 billion in the preceding quarter.

CAR generated $837 million in net cash from operating activities. The adjusted free cash flow utilized was $17 million. Capital expenditure was $53 million.

Avis Budget carries a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Verisk VRSK reported impressive second-quarter fiscal 2025 results.

VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.

IQVIA Holdings Analytics Inc. IQV posted impressive second-quarter 2025 results.

IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.

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This article originally published on Zacks Investment Research (zacks.com).

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