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Highlights
- Avis Budget Group Inc (NASDAQ: CAR, CAR:US) saw its stocks surge by more than 108 per cent on Tuesday, November 2.
- Post market close on Monday, November 1, Avis Budget Group said that it saw its revenues almost double in Q3 2021.
- The car rental firm’s stock price has surged by a whopping 283 per cent in the past year.
Avis Budget Group Inc (NASDAQ: CAR, CAR:US) saw its stocks surge by more than 108 per cent on Tuesday, November 2, noting a daily trading volume of nearly 31 million.
The car rental company’s stock rose to a day high of US$ 545.11 per share, before closing the session at a value of US$ 357.17 apiece.
What fueled Avis Budget’s stock price on Tuesday? Let’s find out.
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Why did Avis Budget Group Inc (NASDAQ: CAR, CAR:US) stock surge?
The Parsippany-Troy Hills, New Jersey-based company’s stock price seems to have been bolstered by its robust financial results for the third quarter of 2021.
Post market close on Monday, November 1, Avis Budget Group said that it saw its revenues almost double in Q3 2021.
The company’s total topline inflated by 96 per cent on a year-over-year (YoY) basis to US$ 3 billion in the latest quarter, a surge that it said was driven by continued demand increase from the second quarter.
Its net income, on the other hand, stood at US$ 674 million in Q3 2021.
Avis Budget Group said that its adjusted EBITDA for the quarter was at its historical best, amounting to US$ 1.057 billion.
The auto company noted a liquidity position of about US$ 1.3 billion at the end of the third quarter, with another US$ 2.7 billion in additional fleet funding capacity.
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Avis Budget Group Inc stock performance
The car rental firm’s stock price has surged by a whopping 283 per cent in the past year. At the moment, it posts a notable price-to-earnings (P/E) ratio of about 68.
This year, Avis Budget’s stock has surged by nearly 178 per cent, as of November 2.
The US$ 23.7-billion market cap company’s scrip has also climbed by nearly 34 per cent in the past month, while its trading volume stood at 2.93 million.
Bottom line
Avis Budget posted earnings per share (EPS) of US$ 10.74 for the third quarter of 2021, which is said to have surpassed a EODHD/Others consensus estimate by about US$ 4.
Also, the company said that its board has approved share buybacks of worth about US$ 1 billion.
The latest surge in Avis Budget’s stock price could have been motored by its Q3 2021 financial results as well as the hints made by the executives during the conference call of expanding the number of electric vehicles (EV) in its fleet.
With the interest in electric cars growing amid rising climate change awareness, Avis Budget could draw in more investor attention if it does go on to play a significant role in the EV industry.
