Avis Budget Stock Declines 11% Despite Reporting Q3 Earnings Beat

Core Insights - Avis Budget Group, Inc. (CAR) reported strong third-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][8] - Adjusted earnings per share reached $10.11, surpassing estimates by 24.7% and increasing 52% year-over-year [1][8] - Revenues totaled $3.5 billion, beating the consensus estimate by 1.1% and reflecting a 1.1% year-over-year growth [1][8] Financial Performance - The stock experienced an 11.1% decline since the earnings release on October 27, despite the positive earnings and revenue results [2] - Over the past year, CAR shares have increased by 43.1%, contrasting with a 13.9% decline in the industry and a 17.8% growth in the Zacks S&P 500 composite [2] Segment Performance - Revenues from the Americas were $2.6 billion, showing a 1% decline from the previous year, but meeting estimates [3] - International revenues reached $898 million, up 7% year-over-year, exceeding the estimate of $863.6 million [3] Profitability Metrics - Adjusted EBITDA was $559 million, an 11% increase from the year-ago quarter [4] - The Americas segment reported adjusted EBITDA of $398 million, a 4% year-over-year increase, while the international segment saw a significant 37% increase to $190 million [4] Balance Sheet and Cash Flow - At the end of Q3 2025, Avis Budget had cash and cash equivalents of $564 million, up from $541 million at the end of Q2 2025 [5] - Corporate debt remained stable at $6.1 billion [5] - The company generated $1.4 billion in net cash from operating activities, with adjusted free cash flow utilized at $42 million and capital expenditure at $51 million [5]