Avis Budget Group Earnings: Swing to a Loss, Yet Revs Strong
Avis Budget Group Inc. (NASDAQ:CAR) dropped to a first quarter loss. Avis Budget Group 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 First Quarter
Results: Reported a loss of $23 million (22 cents per diluted share) in the quarter. Avis Budget Group Inc. had a net income of $7 million or 6 cents per share in the year-earlier quarter.
Revenue: Rose 31.4% to $1.62 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Avis Budget Group Inc. reported adjusted net income of 12 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 7 cents per share. It beat the average revenue estimate of $1.59 billion.
Quoting Management: “We are pleased with our first quarter results, with organic revenue growth ahead of enplanement growth and Adjusted EBITDA reaching record levels, excluding certain items,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “Travel demand across the majority of our markets remains healthy, and residual values of our vehicles in North America have proven to be significantly stronger than our original expectations. Our integration of Avis Europe is progressing as expected, and we remain confident in our ability to achieve $35 million in annual synergy benefits by the first anniversary of the acquisition.”
Revenue has risen for the last four quarters. Revenue increased 33% to $1.63 billion in the fourth quarter of the last fiscal year. The figure rose 7.3% in the third quarter of the last fiscal year from the year earlier and climbed 9.1% in the second quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with a loss of 14 cents versus a mean estimate of net income of 6 cents per share.
Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the second quarter has reached 53 cents per share, up from 40 cents. For the fiscal year, the average estimate has moved up from $1.53 a share to $2.53 over the last thirty days.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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