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Avis Budget (CAR) Down 1.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have lost about 1.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avis Budget due for a breakout? 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 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 24.03% due to these changes.
VGM Scores
At this time, Avis Budget has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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) Down 1.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have lost about 1.8% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avis Budget due for a breakout? 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 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 24.03% due to these changes.
VGM Scores
At this time, Avis Budget has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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.