Avis Budget Group, Inc. (CAR - Free Report) reported solid fourth-quarter 2017 results with adjusted earnings of $38 million or 45 cents per share compared with $13 million or 15 cents per share in the prior-year quarter. Adjusted earnings comfortably beat the Zacks Consensus Estimate of 19 cents.
GAAP earnings for the quarter were $220 million or $2.65 per share against a loss of $31 million or 35 cents per share in the year-ago quarter. The improvement was primarily driven by global sales growth, positive pricing in the Americas, cost-cutting measures and one-time U.S. tax reform benefit. GAAP earnings for full-year 2017 amounted to $361 million or $4.25 per share compared with $163 million or $1.75 per share for the prior-year.
Revenues for the reported quarter were $2,019 million compared with $1,879 million in the year-ago quarter. The year-over-year increase was largely attributable to pricing and utilization improvement in the Americas, strong volume growth and stringent cost-cutting initiatives. The company’s revenues barely exceeded the Zacks Consensus Estimate of $2,018 million. Total revenues for full-year 2017 increased 2% year-over-year to $8,848 million from $8,659 million for the prior-year.
For the quarter, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $140 million compared with $121 million in the year-ago quarter.
Segmental Performance
Americas reported revenues of $1,382 million compared with $1,343 million in the prior-year quarter, primarily due to 3% increase in volume and a more than 2% rise in local currency time and mileage revenues per day, partially offset by 2% lower ancillary revenues per day.
The International segment’s revenues for the reported quarter increased 19% year over year to $637 million due to 15% increase in rental days including 8% benefit from the acquisition of FranceCars.
Financials
Avis Budget had cash and cash equivalents of $611 million as of Dec 31, 2017 compared with $490 million in the prior-year. Net cash inflow from operating activities amounted to $2,648 million at the year-end 2017.
The company’s long-term debt increased to $3,599 million at the end of the year from $3,523 million in the prior year.
For full-year 2017, the company reported adjusted free cash flow of $354 million.
Avis Budget repurchased approximately 1.9 million shares worth $73 million during the fourth quarter, bringing the full-year tally to 6.1 million shares for $200 million.
2018 Guidance
For full-year 2018, Avis Budget forecasts revenues of $9,200 million to $9,450 million, excluding the impact from future changes in currency exchange rates. The company expects adjusted EBITDA of $740 million to $820 million.
For the year, adjusted earnings is expected to be $240 million to $310 million. The company expects adjusted free cash flow between $325 million to $375 million.
Zacks Rank & Key Picks
Avis Budget has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the same industry are:
Healthcare Services Group, Inc. (HCSG - Free Report) , SGS SA (SGSOY - Free Report) and Xerox Corporation (XRX - 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.
Healthcare Services has an expected long-term earnings growth rate of 11%.
SGS has an expected long-term earnings growth rate of 6%.
Xerox surpassed estimates thrice in the trailing four quarters with an average beat of 5.2%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Avis Budget Group, Inc. (CAR - Free Report) reported solid fourth-quarter 2017 results with adjusted earnings of $38 million or 45 cents per share compared with $13 million or 15 cents per share in the prior-year quarter. Adjusted earnings comfortably beat the Zacks Consensus Estimate of 19 cents.
GAAP earnings for the quarter were $220 million or $2.65 per share against a loss of $31 million or 35 cents per share in the year-ago quarter. The improvement was primarily driven by global sales growth, positive pricing in the Americas, cost-cutting measures and one-time U.S. tax reform benefit. GAAP earnings for full-year 2017 amounted to $361 million or $4.25 per share compared with $163 million or $1.75 per share for the prior-year.
Revenues for the reported quarter were $2,019 million compared with $1,879 million in the year-ago quarter. The year-over-year increase was largely attributable to pricing and utilization improvement in the Americas, strong volume growth and stringent cost-cutting initiatives. The company’s revenues barely exceeded the Zacks Consensus Estimate of $2,018 million. Total revenues for full-year 2017 increased 2% year-over-year to $8,848 million from $8,659 million for the prior-year.
For the quarter, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $140 million compared with $121 million in the year-ago quarter.
Segmental Performance
Americas reported revenues of $1,382 million compared with $1,343 million in the prior-year quarter, primarily due to 3% increase in volume and a more than 2% rise in local currency time and mileage revenues per day, partially offset by 2% lower ancillary revenues per day.
The International segment’s revenues for the reported quarter increased 19% year over year to $637 million due to 15% increase in rental days including 8% benefit from the acquisition of FranceCars.
Financials
Avis Budget had cash and cash equivalents of $611 million as of Dec 31, 2017 compared with $490 million in the prior-year. Net cash inflow from operating activities amounted to $2,648 million at the year-end 2017.
The company’s long-term debt increased to $3,599 million at the end of the year from $3,523 million in the prior year.
For full-year 2017, the company reported adjusted free cash flow of $354 million.
Avis Budget repurchased approximately 1.9 million shares worth $73 million during the fourth quarter, bringing the full-year tally to 6.1 million shares for $200 million.
2018 Guidance
For full-year 2018, Avis Budget forecasts revenues of $9,200 million to $9,450 million, excluding the impact from future changes in currency exchange rates. The company expects adjusted EBITDA of $740 million to $820 million.
For the year, adjusted earnings is expected to be $240 million to $310 million. The company expects adjusted free cash flow between $325 million to $375 million.
Zacks Rank & Key Picks
Avis Budget has a Zacks Rank #5 (Strong Sell). A few better-ranked stocks in the same industry are:
Healthcare Services Group, Inc. (HCSG - Free Report) , SGS SA (SGSOY - Free Report) and Xerox Corporation (XRX - 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.
Healthcare Services has an expected long-term earnings growth rate of 11%.
SGS has an expected long-term earnings growth rate of 6%.
Xerox surpassed estimates thrice in the trailing four quarters with an average beat of 5.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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