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Avis Budget (CAR) Q4 Earnings Beat Estimates, Revenues Miss
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Avis Budget Group, Inc. (CAR - Free Report) reported mixed fourth-quarter 2020 results wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
Adjusted loss per share of 36 cents beat the Zacks Consensus Estimate by 10% but fell more than 100% year over year. Total revenues of $1.36 billion lagged the consensus estimate by 1.6% and declined 37.3% year over year.
Over the past year, shares of Avis Budget have gained 10.6% compared with 79.3% rise of the industry it belongs to.
Revenues by Segment
Americas segment revenues of $1.03 billion declined 33% year over year. The segment contributed 76% to total revenues.
International segment revenues of $326 million fell 48% year over year. The segment contributed 24% to total revenues.
Profitability
Adjusted EBITDA was $74 million, down 48% from the prior-year quarter. Adjusted EBITDA margin fell to 5.5% from 6.6% in the year-ago quarter.
Adjusted EBITDA for Americas was $113 million, down 22% from the prior-year quarter. Internationally, adjusted EBITDA was a loss of $28 million against a profit of $16 million in the prior-year quarter.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget exited fourth-quarter 2020 with cash and cash equivalents of $692 million compared with $1.56 billion at the end of the prior quarter. Corporate debt was $4.21 billion compared with $4.16 billion at the end of the prior quarter.
The company generated $59 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $831 million and capital expenditures were $19 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 its top-line growth.
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
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Avis Budget (CAR) Q4 Earnings Beat Estimates, Revenues Miss
Avis Budget Group, Inc. (CAR - Free Report) reported mixed fourth-quarter 2020 results wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
Adjusted loss per share of 36 cents beat the Zacks Consensus Estimate by 10% but fell more than 100% year over year. Total revenues of $1.36 billion lagged the consensus estimate by 1.6% and declined 37.3% year over year.
Over the past year, shares of Avis Budget have gained 10.6% compared with 79.3% rise of the industry it belongs to.
Revenues by Segment
Americas segment revenues of $1.03 billion declined 33% year over year. The segment contributed 76% to total revenues.
International segment revenues of $326 million fell 48% year over year. The segment contributed 24% to total revenues.
Profitability
Adjusted EBITDA was $74 million, down 48% from the prior-year quarter. Adjusted EBITDA margin fell to 5.5% from 6.6% in the year-ago quarter.
Adjusted EBITDA for Americas was $113 million, down 22% from the prior-year quarter. Internationally, adjusted EBITDA was a loss of $28 million against a profit of $16 million in the prior-year quarter.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Balance Sheet and Cash Flow
Avis Budget exited fourth-quarter 2020 with cash and cash equivalents of $692 million compared with $1.56 billion at the end of the prior quarter. Corporate debt was $4.21 billion compared with $4.16 billion at the end of the prior quarter.
The company generated $59 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $831 million and capital expenditures were $19 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 its top-line growth.
Currently, Avis Budget carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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