Avis Budget Group Earnings Cheat Sheet: Tops Analysts’ Expectations

Avis Budget Group, Inc. (NASDAQ:CAR) reported net income above Wall Street’s expectations for the second quarter. Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers in the United States and internationally.

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Avis Budget Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for Avis Budget Group, Inc. rose to $52 million (42 cents per share) vs. $26 million (22 cents per share) in the same quarter a year earlier. This is a twofold rise from the year earlier quarter.

Revenue: Rose 9.1% to $1.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CAR beat the mean estimate of 31 cents per share. It beat the average revenue estimate of $1.36 billion.

Quoting Management: “We reported strong revenue and earnings growth in the second quarter, with both corporate and leisure volumes benefiting from our ongoing investments in driving brand awareness. Fleet costs also decreased substantially as a result of the ongoing strength of the used car market,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “The strategic growth initiatives that we have implemented, including our increased emphasis on inbound-international and small-business rentals, are driving incremental revenue and enhancing the vehicle-rental experience we offer. In addition, our plans for integrating Avis Europe plc are progressing well, and we look forward to realizing significant value from re-uniting our brands globally under one corporate umbrella.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 16 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 4 cents in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.1% to $1.24 billion in the first quarter. The figure rose 5.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 3.2% in the third quarter of the last fiscal year from the year-ago quarter.

Competitors to Watch: Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), Hertz Global Hldgs., Inc. (NYSE:HTZ), AMERCO (NASDAQ:UHAL), Zipcar, Inc. (NASDAQ:ZIP), Ryder System, Inc. (NYSE:R).

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(Source: Xignite Financials)