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Why Is Avis Budget (CAR) Up 7.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have added about 7.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avis Budget due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avis Budget Reports Loss in Q1, Revenues Top Estimates
Avis Budget incurred first-quarter 2021 loss (excluding $1.97 from non-recurring items) of 46 cents, narrower than the Zacks Consensus Estimate of a loss of $2.38. However, the bottom line increased 67.1% on a year-over-year basis. Total revenues of $1.37 billion surpassed the consensus estimate by 10.7%, but declined 21.7% year over year.
Revenues by Segment
Americas segment revenues of $1.08 billion declined 14% year over year. The segment contributed 78.7% to total revenues.
International segment revenues of $292 million fell 41% year over year. The segment contributed 21.3% to total revenues.
Profitability
Adjusted EBITDA was at $47 million, against a loss of $87 million reported in the prior-year quarter. Adjusted EBITDA margin was 3.4% in the reported quarter.
Adjusted EBITDA for Americas was $108 million, against a loss of $30 million reported in the prior-year quarter. Internationally, adjusted EBITDA was a loss of $50 million, wider than a loss of $40 million in the prior-year quarter.
Balance Sheet and Cash Flow
Avis Budget exited first-quarter 2021 with cash and cash equivalents of $576 million compared with $692 billion at the end of the prior quarter. Corporate debt was $4.28 billion compared with $4.21 billion at the end of the prior quarter.
The company generated $336 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $29 million and capital expenditures were $28 million in the reported quarter.
Outlook
With macro-economic uncertainties still persisting and the travel industry suffering because of the same, Avis Budget did not provide any guidance. The company is looking forward to the rollout of the vaccine. For 2021, the company is hopeful of controlling costs and improving the top line.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 248.88% due to these changes.
VGM Scores
Currently, Avis Budget has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Avis Budget (CAR) Up 7.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have added about 7.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avis Budget due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avis Budget Reports Loss in Q1, Revenues Top Estimates
Avis Budget incurred first-quarter 2021 loss (excluding $1.97 from non-recurring items) of 46 cents, narrower than the Zacks Consensus Estimate of a loss of $2.38. However, the bottom line increased 67.1% on a year-over-year basis. Total revenues of $1.37 billion surpassed the consensus estimate by 10.7%, but declined 21.7% year over year.
Revenues by Segment
Americas segment revenues of $1.08 billion declined 14% year over year. The segment contributed 78.7% to total revenues.
International segment revenues of $292 million fell 41% year over year. The segment contributed 21.3% to total revenues.
Profitability
Adjusted EBITDA was at $47 million, against a loss of $87 million reported in the prior-year quarter. Adjusted EBITDA margin was 3.4% in the reported quarter.
Adjusted EBITDA for Americas was $108 million, against a loss of $30 million reported in the prior-year quarter. Internationally, adjusted EBITDA was a loss of $50 million, wider than a loss of $40 million in the prior-year quarter.
Balance Sheet and Cash Flow
Avis Budget exited first-quarter 2021 with cash and cash equivalents of $576 million compared with $692 billion at the end of the prior quarter. Corporate debt was $4.28 billion compared with $4.21 billion at the end of the prior quarter.
The company generated $336 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $29 million and capital expenditures were $28 million in the reported quarter.
Outlook
With macro-economic uncertainties still persisting and the travel industry suffering because of the same, Avis Budget did not provide any guidance. The company is looking forward to the rollout of the vaccine. For 2021, the company is hopeful of controlling costs and improving the top line.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month. The consensus estimate has shifted 248.88% due to these changes.
VGM Scores
Currently, Avis Budget has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.