Avis Budget Group (NASDAQ: CAR) reported Q1 EPS of ($1.40), versus ($0.78) reported last year. Revenue for the quarter came in at $1.75 billion, versus $1.92 billion reported last year.

Outlook

We anticipate revenues being approximately 80% lower in April and May compared to the prior year, with a gradual recovery in June and improving thereafter, as shelter in place restrictions are lifted and leisure travel begins to resume. Our current reservations show improvement in June and sequentially increase over the balance of the summer.

In markets where shelter in place restrictions are being lifted, we are seeing early indications of improving demand, leaving us optimistic for the third quarter. Given the significant cancellations of vehicle orders, which reduce the number of units being added to our fleet, we anticipate needing to dispose of fewer vehicles over the next three months.

As the economy begins to reopen, we are emphasizing safety, trust and empathy in all of our actions. We believe renting a vehicle will be an attractive alternative to other forms of transportation as travel activities resume. We have enhanced our cleaning protocols, including utilizing disinfectant that is CDC-recommended and EPA certified to be effective against human coronavirus, including novel pathogens such as the one responsible for COVID-19.

“Car rental is a clean and safe form of transportation,” said Ferraro. “Empowering our customers to control their own environment as they travel is a key differentiator. We have a strong legacy of providing clean vehicles and improving the customer experience. In times of uncertainty, our customers can count on us to get them wherever they need to go both safely and conveniently.”

For earnings history and earnings-related data on Avis Budget Group (CAR) click here.