The 5 Most Interesting Analyst Questions From Avis Budget Group’s Q1 Earnings Call

Avis’ first quarter saw a negative market reaction, with the stock trading down following results despite the company surpassing Wall Street’s revenue and adjusted EPS expectations. Management attributed the performance to execution on fleet reduction and supply discipline, which enabled stronger pricing in the Americas and a healthier fleet position. CEO Brian Choi highlighted that “this was the first quarter in [10] where we delivered growth in the Americas, driven by strong RPD [revenue per day] performance,” underscoring the shift toward selective business acceptance and improved pricing discipline.

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Avis Budget Group’s Q1 Earnings Call

• Dan Levy (Barclays): Asked about the sustainability of positive pricing trends and what gives management confidence it can hold through the year. CEO Brian Choi said, “We do believe that things have normalized,” citing improved supply discipline and constructive demand.
• Chris Woronka (Deutsche Bank): Inquired if Avis would continue to fleet under demand and whether industry competitors might follow suit. Choi explained that maintaining minimal fleet during off-peak periods, combined with operational efficiency, is the new structural approach.
• Elizabeth Dove (Goldman Sachs): Sought clarity on the EBITDA guidance range and whether current levels represent a normalized long-term run rate. Choi responded that this year’s range is transitional, emphasizing that “structurally, EBITDA should be higher than this range that we’re giving you right now.”
• John Healy (Northcoast Research): Asked about the impact of increased lease returns in the used car market on fleet costs and disposition strategy. Choi noted that Avis is investing in nimble vehicle selling strategies and direct-to-consumer channels to manage depreciation.
• Stephanie Moore (Jefferies): Questioned how geopolitical uncertainty and major events like the World Cup are influencing demand and bookings. Choi indicated that forward bookings in key cities are strong and the company is encouraged by trends heading into the summer peak.

Catalysts in Upcoming Quarters

Looking ahead, our analyst team will closely monitor (1) whether Avis sustains positive pricing trends in the Americas, (2) the company’s ability to manage fleet costs and depreciation as used car market dynamics shift, and (3) the operational rollout and customer uptake of new initiatives like Avis First and the Waymo partnership in Dallas. Execution against these milestones will be critical for maintaining profitability and adapting to evolving travel demand.

Avis Budget Group currently trades at $161.60, down from $182.01 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).

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