Avis Budget Group Inc (NASDAQ:CAR) stock plunges 19.23% (As on February 13, 11:31:19 AM UTC-4, Source: Google Finance) after the company reported mixed fourth-quarter results as earnings beat, but revenue fell short of estimates despite improved rental demand. The company’s liquidity position at the end of the quarter was over $800 million with approximately an additional $900 million of fleet funding capacity. The company has well-laddered corporate debt and no meaningful maturities until 2026. Adjusted EBITDA in the Americas was $309 million for the fourth quarter and $2.2 billion for the year ended 2023. Adjusted EBITDA in International was $28 million for the fourth quarter and $400 million for the year ended 2023. Further, full year revenues of $12.0 billion was a new record for the Company. Net income was $1.6 billion and Adjusted EBITDA was $2.5 billion, both second highest full year records for the Company. The company has finished the year with the highest volume of rentals in the fourth quarter history, and the employees seamlessly provided exceptional service.

CAR in the fourth quarter of FY 23 has reported the adjusted earnings per share of $7.1, beating the analysts’ estimates for the adjusted earnings per share of $4.15. The company achieved this through continued demand improvement, seasonally adjusted price well above historical levels, and reducing the costs in the control. The company had reported the adjusted revenue of $2.76 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $2.81 billion.

Additionally, the company has paid a one-time special cash dividend of $10 per share to the shareholders in the fourth quarter; the first time in the Company’s history. The company has repurchased approximately 1.4 million shares of common stock in the fourth quarter and 4.3 million shares of common stock for the year ended 2023 for a total of $257 million and $889 million, under the share repurchase program, respectively. In November, the company had issued $500 million Senior Notes due February 2031 and used the proceeds to redeem all of the outstanding €250 million Senior Notes due May 2025 and repay $200 million of the Term Loan C due March 2029.

On the other hand, the company has announced significant changes within its leadership team, reinforcing the company’s commitment to its strategic vision and long-term success. Effective January 1, 2024, Izzy Martins, who was serving as EVP Americas, has assumed the role of EVP & Chief Financial Officer, succeeding Brian Choi, who will take on the newly established position of EVP & Chief Transformation Officer.