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Avis Budget (CAR) Up 35.3% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have added about 35.3% 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 catalysts.

Avis Budget Surpasses Q4 Earnings & Revenues Estimates

Avis Budget reported solid fourth-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings of $7.08 per share beat the Zacks Consensus Estimate by 9.6% and the year-ago quarter’s figure by more than 100%. Total revenues of $2.57 billion surpassed the consensus estimate by 8% and improved 90% year over year. The top line was backed by increased revenues per day and a rise in rental days.

Revenues by Segment

Americas segment revenues of $2.10 billion were up more than 100% year over year. The segment contributed 82% of total revenues.

International segment revenues of $469 million were up 44% year over year. The segment contributed 18% of total revenues.

Profitability

Adjusted EBITDA was at $683 million, up more than 100% year over year. Adjusted EBITDA margin was 26.6% compared with 5.5% in the year-ago quarter.

Adjusted EBITDA for Americas was $670 million, up more than 100% year over year. The uptick was backed by strong pricing, increased demand and sustained cost discipline.

Internationally, adjusted EBITDA was $32 million, up more than 100% year over year. The uptick was backed by strong pricing, continued recovering volume and cost-mitigating actions.

Balance Sheet and Cash Flow

Avis Budget exited fourth-quarter 2021 with cash and cash equivalents of $534 million compared with $886 million at the end of the prior quarter. Corporate debt was $4.01 billion compared with $4.03 billion at the end of the prior quarter.

The company generated $943 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $128 million and capital expenditures were $72 million in the reported quarter.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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