Avis Budget Group In. (NASDAQ: CAR) on Tuesday reported first-quarter loss that widened sharply as the company spent more money in the quarter. But the company raises its revenue guidance for the year, pushing stock up.
The Parsippany, N.J.-based company posted a first-quarter loss of $51 million, or 53 cents a share, wider than a loss of $9 million, or 9 cents a share, a year earlier. Excluding certain items, loss was 28 cents a share, compared with a profit of 17 cents a share a year earlier.
Revenue rose 2 percent to $1.88 billion. It would be 3 percent in constant currency.
Analysts had projected an adjusted loss of 7 cents a share on $1.88 billion in reenue.
The company raised its revenue guidance for the year, expecting revenue to increase 3% to 5% to $8.75 billion to $8.9 billion, compared with its previous guidance of a 2% to 4% increase.
“Our first quarter results reflect modest demand growth and unusually soft pricing in the Americas,” said Larry De Shon, Avis Budget Group Chief Executive Officer. “In this environment, we managed our costs and fleet levels carefully. Pricing has already started to turn the corner, and we expect to see progressive improvement in both our pricing metrics and earnings comparisons over the course of the year."
Avis shares rose 5.3 percent to $24.77 at 12:51 p.m. in New York.