Shares of Avis Budget Group Inc. (CAR) fell more than 4% in the extended session Monday after the car-rental company reported a narrower-than-expected adjusted first-quarter loss but said it expects April and May revenue to be 80% lower as the shutdowns due to the coronavirus pandemic continue to crimp leisure and business car renting. Avis said it lost $158 million, or $2.16 a share, in the quarter, compared with a loss of $91 million, or $1.20 a share, in the year-ago period. Adjusted for one-time items, Avis lost $103 million, or $1.40 a share, compared with a loss of 78 cents a year ago. Sales fell 9% to $1.8 billion, Avis said, adding that through February its revenue for the quarter was up 9%. Analysts polled by FactSet had expected Avis to lose $1.89 a share on sales of $1.75 billion. Avis said that it had available liquidity of $1.6 billion as of late March and no meaning debt maturities until 2023. After the revenue plunge for April and May, Avis said it anticipates to experience a "gradual recovery" in June and "improving thereafter, as shelter in place restrictions are lifted and leisure travel begins to resume. Our current reservations show improvement in June and sequentially increase over the balance of the summer." Earlier Monday, shares of Hertz Global Holdings Inc. (HTZ) plunged after a report by The Wall Street Journal said the car rental company had hired an additional adviser ( ) ahead of a planned bankruptcy filing.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
May 04, 2020 17:52 ET (21:52 GMT)
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