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Avis Budget (CAR) Q4 Earnings Beat Estimates, Revenues Up Y/Y

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Avis Budget Group, Inc. (CAR - Free Report) reported better-than-expected fourth-quarter 2022 results wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings (excluding 36 cents from non-recurring items) of $10.46 per share beat the Zacks Consensus Estimate by 52.7% and surged 47.7% year over year. Total revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 2.1% and improved 7.9% year over year. The top line was backed by strong demand and pricing.

Segment-wise Revenues

Americas’ revenues of $2.2 billion (79.5% of total revenues) were up 5% year over year.

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

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 $567 million (20.5% of total revenues) were up 21% year over year.

Profitability

Adjusted EBITDA was $658 million, down 4% year over year. Adjusted EBITDA margin was 23.7% compared with 26.6% in the year-ago quarter.

Adjusted EBITDA for Americas was $624 million, down 7% year over year.  

Internationally, adjusted EBITDA was $63 million, up 97% year over year. The uptick was backed by strong pricing and return of demand.

Balance Sheet and Cash Flow

Avis Budget exited fourth-quarter 2022 with cash and cash equivalents of $570 million compared with $581 million at the end of the prior quarter. Corporate debt was $4.67 billion compared with $4.59 billion at the end of the prior quarter.

CAR generated $845 million net cash from operating activities in the reported quarter. Adjusted free cash flow was $736 million, while capital expenditures were $140 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.

Earnings Snapshots

Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.

Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.

Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

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