Equity Profile

CAR

Avis Budget Group, Inc.

IndustrialsPassenger Ground Transportation$4.9B

May4Mon

Pre-Earnings Brief

UpcomingQ2-2026After Close5:00 PM EDT

Company Snapshot

Avis Budget Group, Inc. (CAR) operates in the passenger ground transportation sector, primarily focusing on car rental services....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors will closely scrutinize this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and capture market share, crucial for assessing its recovery post-pandemic.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

CAR Q2-2026 Earnings Preview

Context

Company Snapshot

Avis Budget Group, Inc. (CAR) operates in the passenger ground transportation sector, primarily focusing on car rental services. As travel demand continues to fluctuate, the company's performance is closely tied to consumer spending and tourism trends, making it an important player in the transportation industry.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

13%

Avg EPS Surprise

-1654.95%

Avg Stock Reaction

-0.40%

Last Quarter Recap

In Q1 2026, Avis Budget Group reported an EPS of -$8.01, which was significantly worse than the expected -$6.83. The stock reacted negatively, dropping 0.47% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations are mixed as the company has struggled with profitability in recent quarters, leading to uncertainty about its future performance.

Bull Case

If Avis can show a strong recovery in rental demand and improve its EPS significantly, it may restore investor confidence and lead to a positive stock reaction.

Bear Case

Continued losses and poor revenue performance could further erode investor sentiment, leading to a negative reaction in the stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

Given the company's recent history of significant EPS misses, this number will be crucial for gauging investor sentiment and future expectations.

How many rental days did Avis achieve this quarter?

This metric will provide insight into demand recovery and operational performance, which are critical for the company's financial health.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in travel demand, which could lead to better-than-expected rental days and improved EPS.

Supporting Evidence

The options market is pricing in a significant move, indicating that traders expect volatility, which could suggest a larger-than-expected reaction to the earnings.

Avis's recent operational adjustments may not yet be fully reflected in analyst expectations, leading to a potential upside surprise.

Key Risk

If rental days exceed expectations significantly, it could lead to a positive reevaluation of the company's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it follows a series of disappointing earnings, and investors are looking for signs of recovery.

Bull Confirmed If

An EPS of less than -$5.00 and a significant increase in rental days would confirm the bull case.

Bear Confirmed If

An EPS worse than -$10.00 would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±7.8%

Historical Avg

±1.5%

Pricing rich

The options market is pricing in a significant move of about 7.8%, indicating that traders expect volatility around the earnings report.

Options are pricing ±7.8% while CAR has averaged ±1.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.9%

30d HV

257.9%

Calls (937K)P/C Ratio: 0.26Puts (922K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Avis beats expectations and raises guidance, history suggests the stock could react positively, potentially moving up around 1.3%.

In-Line / Cautious

If results are in line with expectations but management is cautious, the stock may see muted movement as investors digest the commentary.

Miss

If Avis misses expectations again, history suggests a possible decline of around 0.29% in the stock price.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on rental demand trends and how they compare to pre-pandemic levels.
2Management's outlook on the travel industry and its impact on future earnings.
3Details on cost management strategies and their effectiveness in improving profitability.
4Insights into fleet management and any changes in vehicle availability.
5Comments on competitive pressures and how Avis plans to differentiate itself in the market.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Avis Budget Group, Inc. (CAR) operates in the passenger ground transportation sector, primarily focusing on car rental services....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of the company's profitability and financial health, which investors will closely scrutinize this quarter.

N/A

Revenue Growth

Revenue growth reflects the company's ability to increase sales and capture market share, crucial for assessing its recovery post-pandemic.

N/A

1 more metrics, Wall Street expectations, options signals, track record, and call prep available with Pro.

CAR Q2-2026 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

13%

Avg EPS Surprise

-1654.95%

Avg Stock Reaction

-0.40%

Last Quarter Recap

In Q1 2026, Avis Budget Group reported an EPS of -$8.01, which was significantly worse than the expected -$6.83. The stock reacted negatively, dropping 0.47% the following day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations are mixed as the company has struggled with profitability in recent quarters, leading to uncertainty about its future performance.

Bull Case

If Avis can show a strong recovery in rental demand and improve its EPS significantly, it may restore investor confidence and lead to a positive stock reaction.

Bear Case

Continued losses and poor revenue performance could further erode investor sentiment, leading to a negative reaction in the stock price.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q2-2026?

Given the company's recent history of significant EPS misses, this number will be crucial for gauging investor sentiment and future expectations.

How many rental days did Avis achieve this quarter?

This metric will provide insight into demand recovery and operational performance, which are critical for the company's financial health.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating the potential for a strong recovery in travel demand, which could lead to better-than-expected rental days and improved EPS.

Supporting Evidence

The options market is pricing in a significant move, indicating that traders expect volatility, which could suggest a larger-than-expected reaction to the earnings.

Avis's recent operational adjustments may not yet be fully reflected in analyst expectations, leading to a potential upside surprise.

Key Risk

If rental days exceed expectations significantly, it could lead to a positive reevaluation of the company's growth potential.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

This quarter's performance is pivotal as it follows a series of disappointing earnings, and investors are looking for signs of recovery.

Bull Confirmed If

An EPS of less than -$5.00 and a significant increase in rental days would confirm the bull case.

Bear Confirmed If

An EPS worse than -$10.00 would confirm the bear case.

Pre-Earnings Positioning

Options Market

Implied Move

±7.8%

Historical Avg

±1.5%

Pricing rich

The options market is pricing in a significant move of about 7.8%, indicating that traders expect volatility around the earnings report.

Options are pricing ±7.8% while CAR has averaged ±1.5% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.9%

30d HV

257.9%

Calls (937K)P/C Ratio: 0.26Puts (922K)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Avis beats expectations and raises guidance, history suggests the stock could react positively, potentially moving up around 1.3%.

In-Line / Cautious

If results are in line with expectations but management is cautious, the stock may see muted movement as investors digest the commentary.

Miss

If Avis misses expectations again, history suggests a possible decline of around 0.29% in the stock price.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on rental demand trends and how they compare to pre-pandemic levels.
2Management's outlook on the travel industry and its impact on future earnings.
3Details on cost management strategies and their effectiveness in improving profitability.
4Insights into fleet management and any changes in vehicle availability.
5Comments on competitive pressures and how Avis plans to differentiate itself in the market.