No Credit Card? No Car! Avis Budget Fined $275K For Turning Away Customers: Report
Portfolio Pulse from Lekha Gupta
Avis Budget Group Inc (NASDAQ:CAR) has been fined $275,000 by New York state for refusing to rent vehicles to customers without credit cards. This practice was deemed discriminatory against low-income consumers and communities of color. In Q2 2023, Avis reported EPS of $11.01, above the consensus of $9.79, but sales of $3.12 billion missed the estimate of $3.19 billion. CAR shares closed lower by 3.30 at $224.14 on Tuesday.
August 16, 2023 | 1:16 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Avis Budget Group has been fined for discriminatory practices, which could harm its reputation and customer base. Despite beating EPS estimates in Q2 2023, it missed sales estimates. The stock closed lower on Tuesday.
The fine imposed on Avis Budget Group for discriminatory practices could negatively impact its reputation and customer base. This, combined with the missed sales estimates for Q2 2023, could lead to a decrease in investor confidence, which is reflected in the stock's closing lower on Tuesday.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100