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Avis Budget (CAR) Reports Loss in Q1, Stock Declines 5.8%
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Avis Budget Group’s, Inc. (CAR - Free Report) 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. Moreover, disappointing bottom-line results failed to impress the market as the stock price has dropped 5.8% since the date of earnings release on May 3.
Total revenues of $1.37 billion surpassed the consensus estimate by 10.7%, but declined 21.7% year over year.
In the past year, shares of Avis Budget have surged 469.3% compared with 145.2% rise of the industry it belongs to.
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.
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3%, but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
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Avis Budget (CAR) Reports Loss in Q1, Stock Declines 5.8%
Avis Budget Group’s, Inc. (CAR - Free Report) 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. Moreover, disappointing bottom-line results failed to impress the market as the stock price has dropped 5.8% since the date of earnings release on May 3.
Total revenues of $1.37 billion surpassed the consensus estimate by 10.7%, but declined 21.7% year over year.
In the past year, shares of Avis Budget have surged 469.3% compared with 145.2% rise of the industry it belongs to.
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.
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
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3%, but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>