Dollar Thrifty Automotive Group Inc. Earnings Cheat Sheet: Booking a Profit Again

Falling revenue did not prevent Dollar Thrifty Automotive Group Inc. (NYSE:DTG) from reporting a profit boost in the second quarter. Dollar Thrifty Automotive Group, Inc. operates in the U.S. and Canada and, through its Dollar and Thrifty brands, is mainly engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores.

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Dollar Thrifty Automotive Group Earnings Cheat Sheet for the Second Quarter

Results: Net income for the rental and leasing services company rose to $42.5 million ($1.36 per share) vs. $42.3 million ($1.40 per share) in the same quarter a year earlier. This marks a rise of 0.6% from the year earlier quarter.

Revenue: Fell 0.3% to $395.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: DTG reported adjusted net income of $1.35 per share. By that measure, the company beat the mean estimate of $1.31 per share. It fell short of the average revenue estimate of $408.6 million.

Quoting Management: “We are very pleased with our results for the quarter, particularly the Corporate Adjusted EBITDA margin of 20.5 percent achieved during a period when our car gains declined and rental revenue per day was under pressure,” said Scott L. Thompson, President and Chief Executive Officer. “Our ongoing efforts to maintain very competitive fleet costs and to control operating expenses allowed us to continue to generate increased Corporate Adjusted EBITDA and profits in a less favorable environment,” said Thompson.

Key Stats:

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of 53 cents versus a mean estimate of net income of 37 cents per share.

Net income has increased 54.8% year over year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed more than threefold from the year earlier quarter.

Over the last five quarters, revenue has increased 0.2% on average year over year. The biggest increase came in the fourth quarter of the last fiscal year, when revenue rose 1.1% from the year earlier quarter.

Competitors to Watch: Avis Budget Group Inc. (NYSE:CAR), Hertz Global Hldgs., Inc. (NYSE:HTZ), Helphire Group plc (NYSE:HHR), Ford (NYSE:F), Toyota (NYSE:TM), General Motors (NYSE:GM), A.S.G. (Andy Spyrou) Group Public Ltd (NYSE:ASG) and ZipCar (ZIP).

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(Source: Xignite Financials)