The Rental-Car Crash Worsens
- Full-year profit may be as low as $2.40 a share, company says
- Used auto values fall as ride-hailing companies threaten model
Hertz Investors Brace for Tumult as Avis Misses Estimates
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Avis Budget Group Inc. plunged after slashing its annual profit forecast and missing earnings estimates, as rental-car companies struggle with bloated inventory and threats to their business model.
Avis now sees full-year adjusted earnings per share in the range of $2.40 to $2.85, according to a statement Monday. The company had previously said profit could be as much as $3.50 a share. Avis also missed analysts’ average second-quarter earnings estimate.