Avis Budget posts Q3 profit, shares rise

REUTERS - Car rental company Avis Budget Group Inc posted a quarterly profit, helped by strong pricing and aggressive fleet management, but said rental volumes will remain lower in the fourth quarter.

For the third quarter, net income was $57 million, or 54 cents a share, compared with a net loss of $1.01 billion, or $9.91 a share, a year ago. Excluding items, it earned 65 cents a share.

The company's year-ago quarter was hurt by a $1.26 billion restructuring charge.

Revenue for the company, which competes with Dollar Thrifty, Hertz Global Holdings Inc, fell 14 percent to $1.47 billion.

Car rental revenue was down 14 percent, due mainly to a 21 percent drop in rental days.

Analysts on average were expecting earnings of 55 cents a share, according to Thomson Reuters I/B/E/S. Rental car companies have been hurt as customers cut their discretionary spending on travel, translating to lower rentals.

Shares of the Parsippany, New Jersey-based Avis Budget were up 7 percent at $9 in trading after the bell. They closed at $8.45 on the New York Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Pradeep Kurup)