Avis Budget Group Inc. Earnings Cheat Sheet: Quarter Lacks Gusto

Avis Budget Group Inc. (NASDAQ:CAR) reported its results for the third quarter. 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 Third Quarter

Results: Net income for the rental and leasing services company fell to $82 million (65 cents per share) vs. $90 million (73 cents per share) a year earlier. This is a decline of 8.9% from the year earlier quarter.

Revenue: Rose 7.3% to $1.62 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CAR reported adjusted net income of $1.02 per share. By that measure, the company beat the mean estimate of 99 cents per share. Analysts were expecting revenue of $1.6 billion.

Quoting Management: “We delivered record earnings this quarter driven by increased revenue, our strategic initiatives to accelerate profitable growth, our continued focus on cost containment and lower fleet costs,” said Ronald L. Nelson, Avis Budget Group Chairman and Chief Executive Officer. “We also completed our acquisition of Avis Europe on October three and are excited about the growth and profit opportunities that combining our brands across a global platform will afford us.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 32 cents in the second quarter, by 16 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.1% to $1.41 billion in the second quarter. The figure rose 7.1% in the first quarter from the year earlier and climbed 5.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The average estimate for the fourth quarter remains unchanged at 11 cents a share. The average estimate for the fiscal year is $1.85 per share, a rise from $1.53 ninety days ago.

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)