Dollar Thrifty Automotive Group Inc. Earnings: Exceeds Forecasts with Boost of Profit Rise
Dollar Thrifty Automotive Group Inc. (NYSE:DTG) reported net income above Wall Street’s expectations for the fourth quarter. Dollar Thrifty Automotive Group operates in the United States 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 Fourth Quarter
Results: Net income for Dollar Thrifty Automotive Group Inc. rose to $33.9 million ($1.08 per share) vs. $12.5 million (41 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Revenue: Rose 1.3% to $353.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Dollar Thrifty Automotive Group Inc. reported adjusted net income of $1.09 per share. By that measure, the company beat the mean estimate of 75 cents per share. Analysts were expecting revenue of $355.6 million.
Quoting Management: “We are pleased to announce that for the second consecutive year, the Company is reporting record earnings,” said Scott L. Thompson, Chairman, President and Chief Executive Officer. “During 2011, we benefitted from a robust used vehicle market, a recovering travel market with increasing demand for value-oriented product offerings, and our ongoing focus on expense control and productivity initiatives.”
The company has now seen its net income increase for three consecutive quarters. In the third quarter, net income rose 35.5% and in the second quarter, the figure rose 0.6%.
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 15 cents in the third quarter, by 6 cents in the second quarter, and by 16 cents in the first quarter.
Margins were up in the third quarter, following a drop in the previous quarter. Gross margin grew 0.8 percentage point from the year-earlier quarter to 52.6%. In the second quarter, the figure rose 1.5 percentage points to 52.5% from the year earlier quarter.
The company’s revenue has now risen for two straight quarters. In the third quarter, revenue increased 1.8% to $451.7 million from the year-earlier quarter.
Looking Forward: The average estimate for the first quarter of the next fiscal year remains unchanged at 73 cents a share. The average estimate for the fiscal year has fallen to $4.80 per share from $4.81 seven days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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