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Avis Budget (CAR) Q3 Earnings and Revenues Beat Estimates
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Avis Budget Group, Inc. (CAR - Free Report) reported solid third-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $10.74 per share beat the Zacks Consensus Estimate by 55.7% and the year-ago quarter’s figure by more than 100%. Total revenues of $3 billion surpassed the consensus estimate by 7.4% and improved 96% year over year. The top line was backed by increased revenues per day and rise in rental days.
So far this year, shares of Avis Budget have gained 359.7% compared with 142.5% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Revenues by Segment
Americas segment revenues of $2.40 billion were up more than 100% year over year. The segment contributed 80% of total revenues.
International segment revenues of $598 million were up 42% year over year. The segment contributed 20% of total revenues.
Profitability
Adjusted EBITDA was at $1.06 billion, up more than 100% year over year. Adjusted EBITDA margin was 35.2% compared with 14.3% in the year-ago quarter.
Adjusted EBITDA for Americas was $952 million, up more than 100% year over year. The uptick was backed by strong pricing and sustained cost discipline.
Internationally, adjusted EBITDA was $128 million, up more than 100% year over year. The uptick was backed by pricing and solid cost-reduction efforts to meet demand as volume recovery continues.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget exited third-quarter 2021 with cash and cash equivalents of $886 million compared with $1.32 billion at the end of the prior quarter. Corporate debt was $4.03 billion compared with $4.29 billion at the end of the prior quarter.
The company generated $1.29 billion of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $816 million and capital expenditures were $27 million in the reported quarter.
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Avis Budget (CAR) Q3 Earnings and Revenues Beat Estimates
Avis Budget Group, Inc. (CAR - Free Report) reported solid third-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $10.74 per share beat the Zacks Consensus Estimate by 55.7% and the year-ago quarter’s figure by more than 100%. Total revenues of $3 billion surpassed the consensus estimate by 7.4% and improved 96% year over year. The top line was backed by increased revenues per day and rise in rental days.
So far this year, shares of Avis Budget have gained 359.7% compared with 142.5% rise of the industry it belongs to.
Revenues by Segment
Americas segment revenues of $2.40 billion were up more than 100% year over year. The segment contributed 80% of total revenues.
International segment revenues of $598 million were up 42% year over year. The segment contributed 20% of total revenues.
Profitability
Adjusted EBITDA was at $1.06 billion, up more than 100% year over year. Adjusted EBITDA margin was 35.2% compared with 14.3% in the year-ago quarter.
Adjusted EBITDA for Americas was $952 million, up more than 100% year over year. The uptick was backed by strong pricing and sustained cost discipline.
Internationally, adjusted EBITDA was $128 million, up more than 100% year over year. The uptick was backed by pricing and solid cost-reduction efforts to meet demand as volume recovery continues.
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 third-quarter 2021 with cash and cash equivalents of $886 million compared with $1.32 billion at the end of the prior quarter. Corporate debt was $4.03 billion compared with $4.29 billion at the end of the prior quarter.
The company generated $1.29 billion of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $816 million and capital expenditures were $27 million in the reported quarter.
Currently, Avis Budget carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported basis and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.