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Avis Budget Group (CAR) Q2 Earnings Beat Mark, Increase Y/Y
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Avis Budget Group, Inc. (CAR - Free Report) reported better-than-expected second-quarter 2022 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $15.94 per share beat the Zacks Consensus Estimate by 30.4% and surged more than 100% year over year. Total revenues of $3.24 billion surpassed the consensus estimate by 5.2% and improved 36.7% year over year. The top line was backed by increased revenues per day and strong demand.
Revenues by Segment
Americas segment’s revenues of $2.57 billion were up 30% year over year. The segment contributed to 79% of total revenues.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
International segment’s revenues of $677 million were up 71% year over year. The segment contributed to 20.9% of total revenues.
Profitability
Adjusted EBITDA was at $1,205 million, up 93% year over year. Adjusted EBITDA margin was 37.1% compared with 26.3% in the year-ago quarter.
Adjusted EBITDA for Americas was $1,041 million, up 64% year over year. The uptick was backed by strong pricing and increased demand.
Internationally, adjusted EBITDA was $183 million, up more than 100% year over year. The uptick was backed by strong pricing and volume.
Balance Sheet and Cash Flow
Avis Budget exited second-quarter 2022 with cash and cash equivalents of $579 million compared with $550 million at the end of the prior quarter. Corporate debt was $4.65 billion compared with $4.71 billion at the end of the prior quarter.
CAR generated $1.23 billion of net cash from operating activities in the reported quarter. Adjusted free cash flow was $510 million and capital expenditures were $30 million in the reported quarter.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein OMC’s earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.
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Avis Budget Group (CAR) Q2 Earnings Beat Mark, Increase Y/Y
Avis Budget Group, Inc. (CAR - Free Report) reported better-than-expected second-quarter 2022 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $15.94 per share beat the Zacks Consensus Estimate by 30.4% and surged more than 100% year over year. Total revenues of $3.24 billion surpassed the consensus estimate by 5.2% and improved 36.7% year over year. The top line was backed by increased revenues per day and strong demand.
Revenues by Segment
Americas segment’s revenues of $2.57 billion were up 30% year over year. The segment contributed to 79% of total revenues.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
International segment’s revenues of $677 million were up 71% year over year. The segment contributed to 20.9% of total revenues.
Profitability
Adjusted EBITDA was at $1,205 million, up 93% year over year. Adjusted EBITDA margin was 37.1% compared with 26.3% in the year-ago quarter.
Adjusted EBITDA for Americas was $1,041 million, up 64% year over year. The uptick was backed by strong pricing and increased demand.
Internationally, adjusted EBITDA was $183 million, up more than 100% year over year. The uptick was backed by strong pricing and volume.
Balance Sheet and Cash Flow
Avis Budget exited second-quarter 2022 with cash and cash equivalents of $579 million compared with $550 million at the end of the prior quarter. Corporate debt was $4.65 billion compared with $4.71 billion at the end of the prior quarter.
CAR generated $1.23 billion of net cash from operating activities in the reported quarter. Adjusted free cash flow was $510 million and capital expenditures were $30 million in the reported quarter.
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.
Recent Performances of Some Other Business Services Companies
Equifax (EFX - Free Report) reported mixed second-quarter 2022 results, wherein earnings beat estimates but revenues missed the same.
EFX’s adjusted earnings of $2.09 per share beat the Zacks Consensus Estimate by 3% and improved 5.6% on a year-over-year basis. Revenues of $1.32 billion missed the consensus estimate marginally but improved 6.6% year over year.
IQVIA Holdings (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings and revenues surpassed the Zacks Consensus Estimate.
IQV’s adjusted earnings per share of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year.
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2022 results, wherein OMC’s earnings and revenues surpassed the Zacks Consensus Estimate.
OMC’s earnings of $1.68 per share beat the consensus mark by 7.7% and increased 15.1% year over year, driven by a strong margin performance. Total revenues of $3.6 billion surpassed the consensus estimate by 4.4% but declined slightly year over year.