Avis Budget shares drop after earnings miss

Luke Sharrett | Bloomberg | Getty Images

A customer boards an Avis Budget Group Inc. shuttle bus at the Denver International Airport (DEN) in Denver, Colorado, U.S., on Wednesday, Oct. 28, 2015.

Shares of Avis Budget Group closed 12 percent lower Thursday after the company reported fourth quarter earnings that missed analysts' expectations.

Avis was the worst performer in the Dow transports, which fell 0.8 percent.

The car rental business reported adjusted earnings of 15 cents per share, missing the consensus Thomson Reuters analyst estimate by 2 cents. Avis saw revenue of $1.9 billion for the quarter, slightly missing the Reuters forecast of $1.96 billion.

The firm said currency exchange would likely have a negative impact on revenue growth for 2017. Full year sales guidance fell short of forecasts at $8.8 billion to $8.95 billion, versus the $9.01 billion estimate.

CNBC

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