Avis Budget Group Third Quarter Earnings Sneak Peek

Avis Budget Group (NASDAQ:CAR) will unveil its latest earnings on Tuesday, October 30, 2012. Avis Budget Group provides car and truck rentals and ancillary services to businesses and consumers in the United States and internationally.

Avis Budget Group Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.51 per share, a rise of 48% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.58. Between one and three months ago, the average estimate moved down. It also has dropped from $1.52 during the last month. Analysts are projecting profit to rise by 52.1% versus last year to $2.51.

Past Earnings Performance: Last quarter, the company beat estimates by 24 cents, coming in at net income of 94 cents per share against an estimate of profit of. The company also topped expectations in the first quarter.

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A Look Back: In the second quarter, profit rose 51.9% to $79 million (66 cents a share) from $52 million (42 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 32.2% to $1.87 billion from $1.41 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 34% in revenue from the year-earlier quarter to $2.17 billion.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose $2.32 (16.1%), from $14.37 to $16.69. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 2, 2012, when shares rose for eight straight days, increasing 39.3% (+$4.75) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 18% (-$2.47) over that span.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.3% in the third quarter of the last fiscal year, 33% in the fourth quarter of the last fiscal year and 31.4% in the first quarter before increasing again in the second quarter.

The upcoming earnings announcement is a chance for the company to build on positive results from last quarter. The company reported losses in the fourth quarter of the last fiscal year and the first quarter, but finished in the black with income of $79 million in the second.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.11 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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