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Avis Budget (CAR) Up 24.3% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have added about 24.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avis Budget due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avis Budget reported solid second-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $5.90 per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s figure by more than 100%. Total revenues of $2.37 billion surpassed the consensus estimate by 13.7% and improved more than 100% year over year. The top line was backed by increased revenue per day.
Revenues by Segment
Americas segment revenues of $1.97 billion were up more than 100% year over year. The segment contributed 83% of total revenues.
International segment revenues of $397 million were up more than 100% year over year. The segment contributed 17% of total revenues.
Profitability
Adjusted EBITDA was at $624 million, up more than 100% year over year. Adjusted EBITDA margin was 26.3% in the reported quarter.
Adjusted EBITDA for Americas was $634 million, up more than 100% year over year. The uptick was backed by continued sequential revenue growth and sustained cost discipline.
Internationally, adjusted EBITDA was $8 million, up more than 100% year over year. The uptick was backed by solid cost-reduction efforts to meet demand as international recovery continues.
Balance Sheet and Cash Flow
Avis Budget exited second-quarter 2021 with cash and cash equivalents of $1.32 billion compared with $576 million at the end of the prior quarter. Corporate debt was $4.29 billion compared with $4.28 billion at the end of the prior quarter.
The company generated $919 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $796 million and capital expenditures were $24 million in the reported quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 53.87% due to these changes.
VGM Scores
At this time, Avis Budget has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Avis Budget (CAR) Up 24.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have added about 24.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avis Budget due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Avis Budget Surpasses Q2 Earnings & Revenues Estimates
Avis Budget reported solid second-quarter 2021 results wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $5.90 per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s figure by more than 100%. Total revenues of $2.37 billion surpassed the consensus estimate by 13.7% and improved more than 100% year over year. The top line was backed by increased revenue per day.
Revenues by Segment
Americas segment revenues of $1.97 billion were up more than 100% year over year. The segment contributed 83% of total revenues.
International segment revenues of $397 million were up more than 100% year over year. The segment contributed 17% of total revenues.
Profitability
Adjusted EBITDA was at $624 million, up more than 100% year over year. Adjusted EBITDA margin was 26.3% in the reported quarter.
Adjusted EBITDA for Americas was $634 million, up more than 100% year over year. The uptick was backed by continued sequential revenue growth and sustained cost discipline.
Internationally, adjusted EBITDA was $8 million, up more than 100% year over year. The uptick was backed by solid cost-reduction efforts to meet demand as international recovery continues.
Balance Sheet and Cash Flow
Avis Budget exited second-quarter 2021 with cash and cash equivalents of $1.32 billion compared with $576 million at the end of the prior quarter. Corporate debt was $4.29 billion compared with $4.28 billion at the end of the prior quarter.
The company generated $919 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $796 million and capital expenditures were $24 million in the reported quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review. The consensus estimate has shifted 53.87% due to these changes.
VGM Scores
At this time, Avis Budget has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.