Continued focus on productivity and cost containment initiatives coupled with better travel trends and lower fleet costs drove Avis Budget Group (CAR) to post better-than-expected financial results for second-quarter 2011. The quarterly earnings of $0.63 per share surpassed the Zacks Consensus Estimate of $0.31 and surged more than 2.5 times from the prior-period earnings.
We believe Avis Budget's strong focus on cost reductions will help the company achieve its goal of higher operating margins. Moreover, the new sales force in the European region is expected to further augment its fiscal 2011 revenue.
Further, with continued improvement in travel volume, the combination of better pricing and effective cost management will likely boost the company's performance. Currently, we are maintaining a long-term Outperform recommendation on the stock.
AVIS BUDGET GRP (CAR): Free Stock Analysis Report
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