Avis Budget (CAR 43.85, +4.89) has jumped 12.6% in pre-market after beating fourth quarter expectations. The early spike puts the stock on track to begin the session near its 50-day moving average of 43.62.
The car rental company reported above-consensus fourth quarter earnings of $0.45 per share on a 7.5% year-over-year increase in revenue to $2.02 billion, which was just ahead of market estimates.
The revenue growth was fueled by a 7.0% increase in overall rental days and higher mileage revenue per day. The fourth-quarter growth in rental days was ahead of the full-year growth rate of 5.0%.
Looking at the segment breakdown, revenue in the Americas rose 2.9% year-over-year to $1.38 billion. Volume grew 3.0% and mileage revenue increased more than 2.0%, but ancillary revenue per day declined 2.0%. Strong cost management fueled a 5.9% increase in adjusted EBITDA to $107 million. Per-unit fleet costs ticked up to $309 from $308 one year ago.
International revenue grew 18.8% year-over-year to $637 million. Rental days increased 15.0% while the acquisition of FranceCars added eight percentage points to the growth rate. Cost cutting efforts helped increase adjusted EBITDA 25.0% to $45 million. Per-unit fleet costs rose 1.3% to $239.
The company extended the duration of its debt during the fourth quarter. The term of a $1.80 billion senior revolving credit facility was increased by two years to 2023 while the maturity of a $1.10 billion term loan was extended by three years to 2025.
Looking ahead, the company expects that earnings for the full year will be between $2.90 per share and $3.05 per share while revenue is expected between $9.20 billion and $9.45 billion. The revenue guidance range is ahead of market expectations. The company expects that total revenue per day in the Americas will increase up to 2.0% while International total revenue per day is expected to decline up to 2.0%.