Investing.com -- Shares in Avis Budget Group Inc (NASDAQ:CAR) ticked up 2% in after-hours trading as the largest publicly-traded car rental company in the U.S. increased its 2016-yearly revenue guidance on Tuesday, even after its losses over the previous quarter widened dramatically.
Avis Budget Group, a New Jersey-based company, reported net losses of $51 million or 0.53 EPS for the first quarter of Fiscal Year 2016 amid increased spending, down sharply from profits of $9 million or 0.09 EPS. Revenue, meanwhile, rose moderately to $1.88 billion, up 3% on a constant-currency basis. When one-time effects from acquisition and restructuring related costs were discounted, the company reported per share earnings losses of 0.28, down from profits of 0.17 over the same period a year earlier.
Analysts expected to see an adjusted EPS loss of 0.07 on revenue of $1.88 billion. At the same time, Avis reported Adjusted EBITDA of $44 million, amid considerable increases in rental days and volumes. The gains were offset by higher per-unit-fleet costs and a $33 million negative impact from foreign exchange translation.
"Our first quarter results reflect modest demand growth and unusually soft pricing in the Americas," said Larry De Shon, Avis Budget Group Chief Executive Officer. "In this environment, we managed our costs and fleet levels carefully. Pricing has already started to turn the corner, and we expect to see progressive improvement in both our pricing metrics and our earnings comparisons over the course of the year."
Moving forward, Avis increased its full-year revenue growth outlook to a range between 3 and 5% to a level between $8.75 and $8.9 billion. Previously, the company estimated full-year sales growth ranging from 2-4%.
Shares in Avis Budget Group gained 0.62 or 2.63% to 24.16 in after-hours trading. Over the last 52-weeks, shares in the rental car company have tumbled by more than 50%.