Zipcar Inc Earnings Cheat Sheet: Double-Digit Revenue Growth

Zipcar Inc (NASDAQ:ZIP) swung to a profit during the third quarter. Zipcar operates a car sharing network for more than 560,000 members.

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Zipcar Inc Earnings Cheat Sheet for the Third Quarter

Results: Net income for the company was $651,000 (2 cents per share). Zip Car had a net loss of $2.5 million or 39 cents per share in the year earlier quarter.

Revenue: Rose 24% to $68.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ZIP beat the mean analyst estimate of a loss of 1 cent per share.

Quoting Management: “We are delighted to report a strong quarter of growth and profitability,” said Scott Griffith, Chairman and CEO. “We made significant progress during the period on several fronts, including increased activity and revenue growth across our consumer, business, university and government memberships, as well as the introduction of our Facebook app which builds on our technology leadership and provides an additional access point for our members. Following the quarter end, we completed the integration of the acquired Streetcar operations in the U.K., and we now look forward to further international expansion.”

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with a loss of 17 cents versus a mean estimate of a loss of 22 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from a profit of one cent a share to a loss of one cent over the last ninety days. Over the past ninety days, the average estimates for the fiscal year has risen from a loss of 43 cents per share to a loss of 41 cents.

Competitors to Watch: Hertz Global Hldgs., Inc. (NYSE:HTZ), Dollar Thrifty Automotive (NYSE:DTG), Avis Budget (NYSE:CAR), Ford (NYSE:F), Toyota (NYSE:TM) and General Motors (NYSE:GM).

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(Source: Xignite Financials)