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Avis Budget (CAR) Q3 Earnings Beat Estimates, Revenues Miss
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Avis Budget Group, Inc. (CAR - Free Report) reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $16.78 per share beat the consensus estimate by 15.4% but plunged 22.7% year over year. Total revenues of $3.56 billion missed the consensus estimate by 0.3% but increased 0.5% year over year.
The earnings beat and the increase in revenues are likely to have impressed investors as Avis Budget gained 7% from the date of earning release on Nov 1.
Segmental Revenues
The Americas segment’s revenues of $2.74 billion increased 1% year over year. The figure missed our estimate of $2.78 billion.
The International segment’s revenues of $828 million beat our estimate of $780.3 million but declined 2% year over year.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA was $907 million, down 38% year over year. Adjusted EBITDA margin was 25.5% compared with 41.2% in the year-ago quarter.
Adjusted EBITDA for the Americas segment was $740 million, down 38% year over year. Internationally, adjusted EBITDA was $196 million, 33% lower than the year-ago figure.
Balance Sheet and Cash Flow
Avis Budget exited third-quarter 2023 with cash and cash equivalents of $572 million compared with $571 million at the end of the previous quarter. Corporate debt was $4.77 billion compared with $4.7 billion at the end of the previous quarter.
CAR generated $1.25 billion in net cash from operating activities in the reported quarter. Adjusted free cash flow was $416 million while capital expenditures were $75 million in the reported quarter. The company repurchased 2.2 million shares for $487 million during the quarter.
Earnings Snapshot of Some Business Services Stocks
S&P Global Inc.(SPGI - Free Report) reported impressive third-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate.
SPGI’s adjusted earnings per share (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat consensus estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performance in all divisions.
Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues beat estimates.
VRSK’s adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year. Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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Avis Budget (CAR) Q3 Earnings Beat Estimates, Revenues Miss
Avis Budget Group, Inc. (CAR - Free Report) reported mixed third-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $16.78 per share beat the consensus estimate by 15.4% but plunged 22.7% year over year. Total revenues of $3.56 billion missed the consensus estimate by 0.3% but increased 0.5% year over year.
The earnings beat and the increase in revenues are likely to have impressed investors as Avis Budget gained 7% from the date of earning release on Nov 1.
Segmental Revenues
The Americas segment’s revenues of $2.74 billion increased 1% year over year. The figure missed our estimate of $2.78 billion.
The International segment’s revenues of $828 million beat our estimate of $780.3 million but declined 2% year over year.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Profitability
Adjusted EBITDA was $907 million, down 38% year over year. Adjusted EBITDA margin was 25.5% compared with 41.2% in the year-ago quarter.
Adjusted EBITDA for the Americas segment was $740 million, down 38% year over year. Internationally, adjusted EBITDA was $196 million, 33% lower than the year-ago figure.
Balance Sheet and Cash Flow
Avis Budget exited third-quarter 2023 with cash and cash equivalents of $572 million compared with $571 million at the end of the previous quarter. Corporate debt was $4.77 billion compared with $4.7 billion at the end of the previous quarter.
CAR generated $1.25 billion in net cash from operating activities in the reported quarter. Adjusted free cash flow was $416 million while capital expenditures were $75 million in the reported quarter. The company repurchased 2.2 million shares for $487 million during the 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 Snapshot of Some Business Services Stocks
S&P Global Inc.(SPGI - Free Report) reported impressive third-quarter results, wherein earnings and revenues beat the Zacks Consensus Estimate.
SPGI’s adjusted earnings per share (excluding 88 cents from non-recurring items) of $3.21 rose 9.6% year over year and beat consensus estimate by 5.3%. Revenues of $3.08 billion surpassed the consensus estimate by 2% and improved 8% year over year, backed by strong performance in all divisions.
Verisk Analytics Inc. (VRSK - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues beat estimates.
VRSK’s adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
Fiserv, Inc.(FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted earnings per share (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.