Shares of car rental services provider Avis (NASDAQ:CAR)
fell 14.9% in the afternoon session after the company reported disappointing second-quarter financial results that fell significantly short of analyst expectations. The car rental company’s earnings per share (EPS) came in at just $0.10, a staggering 95% below the consensus estimate of $2.02 and a 75.6% drop from the prior-year quarter. Total revenue also disappointed, decreasing by 0.3% year-over-year to $3.04 billion, which missed Wall Street's forecast of $3.07 billion. The company’s net income also declined sharply, falling 66.7% to $5 million. The substantial miss on profitability and the slight revenue decline prompted a strong negative reaction from investors.
Car rental services provider Avis (NASDAQ:CAR) reported Q2 CY2025 results beating Wall Street’s revenue expectations, but sales were flat year on year at $3.04 billion. Its GAAP profit of $0.10 per share was 94.5% below analysts’ consensus estimates.
Wall Street’s bearish price targets for the stocks in this article signal serious concerns.
Such forecasts are uncommon in an industry where maintaining cordial corporate relationships often trumps delivering the hard truth.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.4%, S&P 500 +1.0%) on hopes the reported ceasefire between Israel and Iran will hold. This de-escalation in a volatile region helped to ease concerns about potential disruptions to global oil supplies, leading to a notable dip in crude oil prices.
Car rental services provider Avis (NASDAQ:CAR) fell short of the market’s revenue expectations in Q1 CY2025, with sales falling 4.7% year on year to $2.43 billion. Its non-GAAP loss of $5.23 per share was 12.1% above analysts’ consensus estimates.
Rapid spending isn’t always a sign of progress.
Some cash-burning businesses fail to convert investments into meaningful competitive advantages, leaving them vulnerable.
A number of stocks jumped in the afternoon session after the major indices rebounded, as the Bureau of Labor Statistics report revealed a resilient labor market with non-farm payrolls rising by 139,000 in May 2025, significantly above the consensus forecast of 125,000.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at ground transportation stocks, starting with Avis Budget Group (NASDAQ:CAR).
