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Avis Budget (CAR) Gains 28% Despite Earnings Miss in Q1
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Avis Budget Group, Inc. (CAR - Free Report) reported mixed first-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.
The stock has gained 28.3% since its earnings release on May 1 despite the earnings miss.
CAR’s adjusted loss was $3.2 per share compared with the Zacks Consensus Estimate of a loss of $3.15 and year-ago earnings of $7.72. Total revenues of $2.6 billion beat the consensus estimate by a slight margin but decreased marginally year over year.
Avis Budget’s shares have lost 1.6% over the past month compared with the marginal decline of the industry it belongs to.
Revenues from Americas amounted to $2 billion, reflecting a decrease of 1% from the year-ago quarter. The metric was in line with our estimate.
International revenues were $558 million, up 3% year over year. The figure missed our estimation of $567.1 million.
Profitability
Adjusted EBITDA was $12 million, down 98% from fourth-quarter 2023. The Americas segment reported an adjusted EBITDA of $44 million, which declined 91% from the year-ago quarter. Internationally, adjusted EBITDA loss was reported to be $15 million, down more than 100% from the year-ago quarter.
Balance Sheet and Cash Flow
Avis Budget exited the first quarter with cash and cash equivalents of $522 million compared with $555 million at the end of fourth-quarter 2023. Corporate debt amounted to $5.4 billion compared with $4.82 billion reported in the preceding quarter.
CAR generated $589 million in net cash from operating activities. Adjusted free cash flow utilized amounted to $639 million. Capital expenditures were $56 million.
Avis Budget currently carries a Zacks Rank #4 (Sell).
Equifax Inc. (EFX - Free Report) reported mixed first-quarter results.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
APTV’s quarterly adjusted earnings of $1.16 per share beat the Zacks Consensus Estimate by 10.5% and increased 27.5% year over year. Revenues of $4.9 billion missed the consensus estimate by 1.7% but increased 1.7% year over year.
TT’s adjusted earnings per share of $1.94 surpassed the Zacks Consensus Estimate by 18.3% and increased 37.6% year over year. Revenues of $4.2 billion beat the consensus mark by 5.7% and increased 15% year over year on a reported basis and 14% organically.
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Avis Budget (CAR) Gains 28% Despite Earnings Miss in Q1
Avis Budget Group, Inc. (CAR - Free Report) reported mixed first-quarter 2024 results, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same.
The stock has gained 28.3% since its earnings release on May 1 despite the earnings miss.
CAR’s adjusted loss was $3.2 per share compared with the Zacks Consensus Estimate of a loss of $3.15 and year-ago earnings of $7.72. Total revenues of $2.6 billion beat the consensus estimate by a slight margin but decreased marginally year over year.
Avis Budget’s shares have lost 1.6% over the past month compared with the marginal decline of the industry it belongs to.
Avis Budget Group, Inc. Price and EPS Surprise
Avis Budget Group, Inc. price-eps-surprise | Avis Budget Group, Inc. Quote
Segmental Revenues
Revenues from Americas amounted to $2 billion, reflecting a decrease of 1% from the year-ago quarter. The metric was in line with our estimate.
International revenues were $558 million, up 3% year over year. The figure missed our estimation of $567.1 million.
Profitability
Adjusted EBITDA was $12 million, down 98% from fourth-quarter 2023. The Americas segment reported an adjusted EBITDA of $44 million, which declined 91% from the year-ago quarter. Internationally, adjusted EBITDA loss was reported to be $15 million, down more than 100% from the year-ago quarter.
Balance Sheet and Cash Flow
Avis Budget exited the first quarter with cash and cash equivalents of $522 million compared with $555 million at the end of fourth-quarter 2023. Corporate debt amounted to $5.4 billion compared with $4.82 billion reported in the preceding quarter.
CAR generated $589 million in net cash from operating activities. Adjusted free cash flow utilized amounted to $639 million. Capital expenditures were $56 million.
Avis Budget currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Equifax Inc. (EFX - Free Report) reported mixed first-quarter results.
EFX’s adjusted earnings (excluding 50 cents from non-recurring items) were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
Aptiv PLC (APTV - Free Report) reported mixed first-quarter 2024 results.
APTV’s quarterly adjusted earnings of $1.16 per share beat the Zacks Consensus Estimate by 10.5% and increased 27.5% year over year. Revenues of $4.9 billion missed the consensus estimate by 1.7% but increased 1.7% year over year.
Trane Technologies plc (TT - Free Report) reported better-than-expected first-quarter results.
TT’s adjusted earnings per share of $1.94 surpassed the Zacks Consensus Estimate by 18.3% and increased 37.6% year over year. Revenues of $4.2 billion beat the consensus mark by 5.7% and increased 15% year over year on a reported basis and 14% organically.