Avis Budget Group down after reporting earnings

Yahoo Finance's Jared Blikre joined YahooFInance Live to break down Avis Budget Group's quarterly earnings report.

Video Transcript

EMILY MCCORMICK: I want to bring in Jared Blikre again to break down Avis's earnings. Jared, what are they?

JARED BLIKRE: Well, we got beats on both the top and bottom lines. They're not big beats, but the stock is down about 1% in after hours trading. So let me get right to the numbers. Net revenue for the first quarter came in at $1.37 billion. That's down 24% year over year, but higher than the estimate of $1.22 billion. Adjusted loss per share was $0.46, and the estimate was for a bigger-- a wider loss at $1.95.

And then the American per unit fleet cost, this key metric is down 22% versus being down 10% year over year. They are not providing guidance at this time. This is a stock that's been on a tear. Let me just show you a one-year chart here on the YFi Interactive. You can see year to date, they're up 138%. And let's go to that year chart-- up 540%. So, huge gains there.

I also want to highlight something from the report. This has to do with the semiconductor shortage. They're saying that global shortage is causing uncertainty in fleet supply and resulting in tighter fleets throughout the entire industry. We've historically navigated through difficult vehicle recalls. And we believe we have the logistics in place to effectively manage our fleet during this disruption in supply.

And I'll tell you what. I've been tracking this story throughout the day. Wholesale used cars prices are up half-- or 50%, which is a huge amount, and it has yet to really feel its way into the retail market. But these guys, these rental car agencies, they are now net buyers of used cars when they used to be net sellers. So, a huge disruption in the industry going on right now. Just taking a look at the stock, still down about 1% in after hours trading. But some small beats, and I think the investors will take them.