Avis’ quarterly loss deepens, sales drop 22% in Q1

Avis Budget Group Inc. late Monday reported another quarterly loss and sales that dropped 22%, but the results were better than expected and the stock fell about 1% in the extended session. Avis said it lost $170 million, or $2.43 a share, in the quarter, compared with a loss of $158 million, or $2.16 a share, in the year-ago quarter. Adjusted for one-time items, Avis lost 46 cents a share. Sales fell to $1.37 billion, from $1.75 billion a year ago. Analysts polled by FactSet had expected an adjusted loss of $1.99 a share on sales of $1.31 billion. Avis also said the ongoing chip shortage is causing “uncertainty” for its supply of vehicles, but it has been managing the situation using its experience navigating other problems such as vehicle recalls. “We continue to get new car deliveries every day and believe we can increase our fleet utilization efficiency to capture increased demand,” Avis said in a statement. Shares of Avis ended the regular trading day down 0.7%.

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