Avis stock plunges despite better-than-expected earnings

Yahoo Finance Live anchors discuss third-quarter earnings for Avis.

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BRAD SMITH: We've got some more-- more movers to get to this morning here that we're tracking. Just so excited here. We got to start with shares of Avis, though. This one's a big mover on the day, down by about 10%, 10.2% right now. The rental car company moving lower after reporting an 18% rise in revenue year over year and earnings that actually beat expectations. So it was a beat on the top and a big beat on the bottom.

JULIE HYMAN: The stock was up at first when these numbers came out, but it seems like maybe that they were helped by one-time items that are not going to last. That seems to be what the analysts are saying.

BRIAN SOZZI: Yeah, this was a-- so the earnings, $21.70 versus consensus of 14.82. I mean, they blew it out of the water. But to your point, Julie, Morgan Stanley out with a note just now, I think, kicking-- putting a dent in this quarter here, to your point, saying this might be driven by one-time expense savings. And the bigger concern here is that the used car price index, the Manheim Index, is starting to decline from all-time highs-- big red flag.

JULIE HYMAN: Yeah, basically, you saw more depreciation-- they're expecting the cars to depreciate more, I believe, if I'm reading this, because the cars that they carry on their balance sheet, the value fluctuates. And they're saying, going forward, it might be less favorable to them, that sort of fluctuation. So that seems to be--

BRIAN SOZZI: Another good sign on the travel recovery, though.

BRAD SMITH: Yeah, and then on the travel recovery, it really leans back towards where it's this mix in demand of the corporate travel that's starting to come back, rent more cars, and then additionally, people who just want to be able to continue to maintain if they're traveling in and out of destinations and want to continue to adhere to their own kind of precautionary measures. That leads them right directly into service of an Avis, a Budget, or even a Hertz, if you will, as well. And we've been tracking shares of Hertz, too, in tandem with this entire industry.