(Reuters) - Car rental company Dollar Thrifty Automotive Group (DTG.N) posted a quarterly profit ahead of market expectations, helped by a recovery in the U.S. leisure travel market, and it raised its full-year earnings outlook.
Dollar Thrifty, which was the object of a prolonged takeover battle between larger rivals Hertz Global Holdings Inc (HTZ.N) and Avis Budget Group Inc (CAR.O) until October, said it expects strength in the used-car market to continue and travel volumes to improve in 2012.
The company forecast full-year profit of between $5.00 and $5.60 per share, above its prior view of between $4.60 and $5.20.
Analysts on average were expecting earnings of $5.36 per share, according to Thomson Reuters I/B/E/S.
First-quarter net income rose to $40.4 million, or $1.35 per share, from $16.5 million, or 53 cents per share, a year ago.
" the highest first-quarter profit in the company's history," CEO Scott Thompson said in a statement.
A strong used-car market and better fleet utilization helped the quarter, he added.
Analysts had expected earnings of $1.30 per share.
Revenue rose 3 percent to $356.3 million, beating estimates of $355.5 million.
Fleet cost fell 46 percent to $136 per month and vehicle utilization rose to 81 percent from 79.7 percent.
Shares of the company, which is valued at more than $2 billion, closed at $80.53 on Tuesday on the New York Stock Exchange.
