We may do a deal or 3, but profit target may be tough: Avis CFO
Avis Budget has warned that hitting its upper earnings target would be a challenge given higher costs, even as it eyes a set of small acquisitions.
Benzinga.com reported that Avis' chief financial officer, David Wyshner, told an investment conference on Tuesday that rising fleet costs and sluggish business in Europe may take a toll on profits. Wyshner's comments helped send Avis' stock reeling in Tuesday's trading.
A separate report on Skift.com said the budget car rental company was also pursuing three separate deals over the next six months, and one of them could be bigger than $50 million. The CFO said merger opportunities had become more attractive since late summer.
Avis' struggles come amid strains in the auto rental sector. Early last month, Hertz CEO Mark Frissora stepped down amid widespread investor discontent, citing personal reasons. Hertz's CFO then departed in the midst of accounting problems.
Avis' stock, traded on the Nasdaq, fell by nearly 2 percent in premarket trading Wednesday, after plunging nearly 7 percent in the previous regular session.
CORRECTION: An earlier version of this story misidentified Avis as the subject of investor and accounting troubles.