Dollar Thrifty Automotive Group Inc. Earnings Cheat Sheet: Streak of Three Straight Quarters of Expanding Margins Snapped, but Profit Rises

Dollar Thrifty Automotive Group Inc. (NYSE:DTG) reported net income above Wall Street’s expectations for the third quarter. Dollar Thrifty Automotive Group operates in the United States and Canada and, through its Dollar and Thrifty brands, is mainly engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores.

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Dollar Thrifty Automotive Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for the rental and leasing services company rose to $66.6 million ($2.13 per share) vs. $49.2 million ($1.62 per share) in the same quarter a year earlier. This marks a rise of 35.5% from the year earlier quarter.

Revenue: Rose 1.8% to $451.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DTG reported adjusted net income of $2.14 per share. By that measure, the company beat the mean estimate of $1.99 per share. Analysts were expecting revenue of $447.8 million.

Quoting Management: “We are pleased that the Company is reporting the highest quarterly profit in its history. We remain keenly focused on profitable revenue growth, productivity initiatives, cost control and disciplined fleet management,” said Scott L. Thompson, President and Chief Executive Officer.

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the second quarter and by 16 cents in the first quarter.

The company has now seen net income rise in two straight quarters. In the second quarter, net income rose 0.6% from the year earlier.

Over the last five quarters, revenue has increased 0.7% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 1.8% from the year earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 82 cents per share to 80 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $4.70 per share, a rise from $4.65 ninety days ago.

Competitors to Watch: Avis Budget Group Inc. (NYSE:CAR), Hertz Global Hldgs., Inc. (NYSE:HTZ), Helphire Group plc (NYSE:HHR), and A.S.G. (Andy Spyrou) Group Public Ltd (NYSE:ASG).

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(Source: Xignite Financials)