Why Is Avis Budget (CAR) Down 8% Since Last Earnings Report?

Core Insights - Avis Budget Group reported strong Q3 2025 earnings, with adjusted earnings per share of $10.11, exceeding estimates by 24.7% and increasing 52% year-over-year [2] - Revenues reached $3.5 billion, surpassing the consensus estimate by 1.1% and showing a 1.1% year-over-year growth [2] Segment Performance - Revenues from the Americas were $2.6 billion, reflecting a 1% decline from the previous year, but met estimates [3] - International revenues increased to $898 million, up 7% year-over-year, exceeding the estimate of $863.6 million [3] Profitability Metrics - Adjusted EBITDA for the company 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 international adjusted EBITDA was $190 million, up 37% [4] Financial Position - 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, and the company generated $1.4 billion in net cash from operating activities [5] Estimate Trends - Consensus estimates for the stock have trended downward, with a significant shift of -112.21% noted [6] - Avis Budget currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [9] VGM Scores - The company has a strong Growth Score of A, but a lower Momentum Score of D, while maintaining an overall aggregate VGM Score of A [7]