Avis Budget Group, Inc. (CAR) stock declined -12.05% to $171.25 in the normal trading session on Tuesday after the company reported fourth-quarter and fiscal 2021 earnings. The stock closed at $194.71 at the end of Monday’s trading session. The stock volume traded in the last trading session was around 861.41K shares. The current market cap of the company is around 9.58 billion.
CAR: Key Financials
- Avis Budget Group, Inc. (CAR) revenue in Q4 2021 was $2.57 billion. It is a gain of more than 90% compared to the revenue of Q4 in 2020.
- Fiscal year revenue was $9.3 billion, and it is an increase of more than 72% compared to the revenue in fiscal 2020.
- The company’s net income in Q4 2021 was around $381 million. Its EBITDA was $683 million.
- CAR net income in fiscal 2021 was around $1.3 billion with an EBITDA of $2.4 billion.
- The company repurchased 2.6 million worth of common shares at an average price of $170 in the fourth quarter, bringing their total stock buybacks for 2021 to roughly 14.3 million common shares.
- EPS is $7.08 per share.
CAR has lost more than 12.5% in a single day
CAR lost more than 12.5% in single-day trading. The company announced positive results, but its stock plunged despite the good numbers. CAR gained more than 274% in the trailing twelve months.
CAR CEO’s remarks
The robust performance continued in the fourth quarter, with all significant measures exceeding pre-pandemic levels in the Americas, said Avis Budget Group CEO, Joe Ferraro. Despite Omicron’s emergence, they offered the best year ever. This would not have been possible without our entire organization’s relentless effort, for which he is thankful to the team for that.
Conclusion
The stock is declining despite the incredible financial numbers. The reason is unclear at the moment. The liquidity position of the company is currently at around $757 million.
