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Avis Budget Group Inc.(CAR - Free Report) reported first-quarter 2017 results wherein adjusted loss per share was 94 cents compared with a loss of 28 cents in the prior-year quarter. Adjusted loss was also wider than the Zacks Consensus Estimate of a loss of 51 cents.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
GAAP loss for the quarter was $1.25 cents per share compared with loss of 53 cents in the prior-year quarter, due to decline in revenues.
Revenues for the quarter were $1,839 million compared with $1,881 million in the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $1,854 million. Revenues declined primarily due to higher-than-expected fleet costs and continued pricing pressures.
Adjusted loss before interest, tax, depreciation and amortization was $27 million against adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $44 million in the year-ago quarter, driven by lower pricing and higher per-unit fleet costs in the Americas segment.
Segmental Performance
Americas reported revenues of $1,314 million compared with $1,364 in the prior-year quarter, primarily due to a 1% increase in rental days, offset by a 4% fall in pricing. Per-unit fleet costs increased 7% to $333 per month.
The International segment’s revenues were up 2% year over year to $525 million, due to the acquisition of France Cars, partially offset by a 6% decrease in pricing, including a 2% negative impact from currency movements.
Financials
Avis ended the quarter with cash and cash equivalents of $923 million. As of Mar 31, 2017, the company’s shareholders’ equity was $221 million. During the year, the company generated $447 million as cash flow from operating activities. Avis repurchased 1.5 million shares worth $50 million.
Guidance
Full-year 2017 revenues are expected to be in the range of $8.8−$8.95 billion. Movements in currency exchange rates are currently expected to hurt revenue growth by approximately $75 million.
Per-unit fleet costs are expected to be in the range of $285−$295 per month in 2017 compared with $285 in 2016. In the Americas segment, per-unit fleet costs are expected to be between $317 and $327. In the International segment, per-unit fleet costs are expected to be between $214 and $224 per month.
Adjusted EBITDA is expected to be in the range of $800−$880 million. For 2017, adjusted earnings per share are expected to be between $2.85 and $3.50. The company expects to repurchase $300 million or more stocks in 2017.
CBIZ topped estimates twice in the trailing four quarters with an average earnings surprise of 18.4%.
S&P Global has a long-term earnings growth expectation of 12.3%. It has a positive earnings history, beating estimates in each of the trailing four quarters.
Huron has a long-term earnings growth expectation of 13.5%. It has a positive earnings history, beating estimates thrice in the trailing four quarters.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Avis (CAR) Reports Wider Q1 Loss, Provides '17 Guidance
Avis Budget Group Inc.(CAR - Free Report) reported first-quarter 2017 results wherein adjusted loss per share was 94 cents compared with a loss of 28 cents in the prior-year quarter. Adjusted loss was also wider than the Zacks Consensus Estimate of a loss of 51 cents.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. Price, Consensus and EPS Surprise | Avis Budget Group, Inc. Quote
GAAP loss for the quarter was $1.25 cents per share compared with loss of 53 cents in the prior-year quarter, due to decline in revenues.
Revenues for the quarter were $1,839 million compared with $1,881 million in the year-ago quarter. Revenues missed the Zacks Consensus Estimate of $1,854 million. Revenues declined primarily due to higher-than-expected fleet costs and continued pricing pressures.
Adjusted loss before interest, tax, depreciation and amortization was $27 million against adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of $44 million in the year-ago quarter, driven by lower pricing and higher per-unit fleet costs in the Americas segment.
Segmental Performance
Americas reported revenues of $1,314 million compared with $1,364 in the prior-year quarter, primarily due to a 1% increase in rental days, offset by a 4% fall in pricing. Per-unit fleet costs increased 7% to $333 per month.
The International segment’s revenues were up 2% year over year to $525 million, due to the acquisition of France Cars, partially offset by a 6% decrease in pricing, including a 2% negative impact from currency movements.
Financials
Avis ended the quarter with cash and cash equivalents of $923 million. As of Mar 31, 2017, the company’s shareholders’ equity was $221 million. During the year, the company generated $447 million as cash flow from operating activities. Avis repurchased 1.5 million shares worth $50 million.
Guidance
Full-year 2017 revenues are expected to be in the range of $8.8−$8.95 billion. Movements in currency exchange rates are currently expected to hurt revenue growth by approximately $75 million.
Per-unit fleet costs are expected to be in the range of $285−$295 per month in 2017 compared with $285 in 2016. In the Americas segment, per-unit fleet costs are expected to be between $317 and $327. In the International segment, per-unit fleet costs are expected to be between $214 and $224 per month.
Adjusted EBITDA is expected to be in the range of $800−$880 million. For 2017, adjusted earnings per share are expected to be between $2.85 and $3.50. The company expects to repurchase $300 million or more stocks in 2017.
Aviscurrently carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the industry include CBIZ, Inc. (CBZ - Free Report) , S&P Global, Inc. (SPGI - Free Report) and Huron Consulting Group Inc. (HURN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CBIZ topped estimates twice in the trailing four quarters with an average earnings surprise of 18.4%.
S&P Global has a long-term earnings growth expectation of 12.3%. It has a positive earnings history, beating estimates in each of the trailing four quarters.
Huron has a long-term earnings growth expectation of 13.5%. It has a positive earnings history, beating estimates thrice in the trailing four quarters.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>