Avis Budget Group Earnings: Here’s Why Investors Don’t Like These Results

Avis Budget Group, Inc. (NYSE:CAR) had a loss and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3%.

Avis Budget Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.07 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Rose 4.11% to $1.7 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Avis Budget Group, Inc. reported adjusted EPS loss of $-0.07 per share. By that measure, the company missed the met analyst estimate of $-0.07. It beat the average revenue estimate of $1.63 billion.

Quoting Management: “We delivered record results in 2012, aided by the robust used car market in the first half of the year. Our results reflected organic revenue growth augmented by the additions of Avis Europe and Apex, continued margin expansion, and record earnings per share, excluding certain items,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “As we look forward, not only are we looking to deliver solid results in 2013; we have also set our sights on reaching $1 billion of Adjusted EBITDA by 2015 by focusing relentlessly on profitable growth, enhancing our customers’ experience and driving efficiencies throughout our organization.”

Key Stats (on next page)…

Revenue decreased 21.75% from $2.17 billion in the previous quarter. EPS decreased to $-0.07 in the quarter versus EPS of $1.46 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.07 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $2.45 to a profit of $2.42 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)