Avis Budget Group, Inc. (NASDAQ:CAR) swung to a profit in the first quarter and beat Wall Street’s expectations in the process. Avis Budget Group, Inc. provides car and truck rentals and ancillary services to businesses and consumers in the United States and internationally.
Avis Budget Group Earnings Cheat Sheet for the First Quarter
Results: Swung to a profit of $7 million (6 cents/diluted share) in the quarter. The rental and leasing services company had a net loss of $38 million or a loss of 37 cents per share in the year earlier quarter.
Revenue: Rose 7.1% to $1.24 billion YoY.
Actual vs. Wall St. Expectations: CAR reported adjusted net income of of 11 cents/share. By that measure, the company beat the mean analyst estimate of a loss of 5 cents/share. Estimates ranged from a loss of 2 cents per share to a loss of 10 cents per share.
Quoting Management: “We delivered solid revenue and earnings growth in the quarter as improved travel trends, a continued focus on productivity and cost containment, and lower-than-expected fleet costs more than overcame the weather-related disruptions we faced,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “Our near-term strategic growth initiatives are well under way, our new marketing programs are resonating with customers, and we are excited about the investments we are making to drive profitable revenue growth.”
Over the last five quarters, revenue has increased 2.2% on average year over year. The biggest increase came in the most recent quarter, when revenue rose 7.1% from the year earlier quarter.
Competitors to Watch: Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), Hertz Global Hldgs., Inc. (NYSE:HTZ), AMERCO (NASDAQ:UHAL), Franchise Services of North America Inc. (FSN), EV Transportation Inc (EVTP), Zipcar, Inc. (NASDAQ:ZIP), Ryder System, Inc. (NYSE:R), and Tourism Holdings Limited (THL)
Stock Performance: Shares of CAR are unchanged in after hours trading.