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Avis Budget Group, Inc. (CAR - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $7.1 per share beat the consensus estimate by 62.8% but plunged 32.1% year over year. Total revenues of $2.76 billion missed the consensus estimate by 1.3% and decreased slightly from the year-ago reported figure.
Investors seem to be unimpressed by the earnings beat as shares of CAR declined 6.7% from the date of earning release on Feb 12.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
The Americas segment’s revenues of $2.17 billion decreased 1.8% year over year. The figure missed our estimate of $2.78 billion.
The International segment’s revenues of $597 million beat our estimate by 8.3% and increased 5.3% year over year.
Profitability
Adjusted EBITDA was $311 million, down 53% year over year. Adjusted EBITDA margin was 11.25% compared with 23.75% in the year-ago quarter.
Adjusted EBITDA for the Americas segment was $309 million, down 50% year over year. Internationally, adjusted EBITDA was $28 million, down 56% from the year-ago figure.
Balance Sheet and Cash Flow
Avis Budget exited fourth-quarter 2023 with cash and cash equivalents of $555 million compared with $572 million at the end of the previous quarter. Corporate debt was $4.82 billion compared with $4.67 billion at the end of the previous quarter.
CAR generated $793 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $579 million while capital expenditures were $93 million in the reported quarter. The company repurchased 1.4 million shares for $257 million during the quarter. Avis Budget returned $355 million as dividends for the first time since its inception.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.
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Avis Budget (CAR) Stock Loses 6.7% Despite Q4 Earnings Beat
Avis Budget Group, Inc. (CAR - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
Adjusted earnings of $7.1 per share beat the consensus estimate by 62.8% but plunged 32.1% year over year. Total revenues of $2.76 billion missed the consensus estimate by 1.3% and decreased slightly from the year-ago reported figure.
Investors seem to be unimpressed by the earnings beat as shares of CAR declined 6.7% from the date of earning release on Feb 12.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Segmental Revenues
The Americas segment’s revenues of $2.17 billion decreased 1.8% year over year. The figure missed our estimate of $2.78 billion.
The International segment’s revenues of $597 million beat our estimate by 8.3% and increased 5.3% year over year.
Profitability
Adjusted EBITDA was $311 million, down 53% year over year. Adjusted EBITDA margin was 11.25% compared with 23.75% in the year-ago quarter.
Adjusted EBITDA for the Americas segment was $309 million, down 50% year over year. Internationally, adjusted EBITDA was $28 million, down 56% from the year-ago figure.
Balance Sheet and Cash Flow
Avis Budget exited fourth-quarter 2023 with cash and cash equivalents of $555 million compared with $572 million at the end of the previous quarter. Corporate debt was $4.82 billion compared with $4.67 billion at the end of the previous quarter.
CAR generated $793 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $579 million while capital expenditures were $93 million in the reported quarter. The company repurchased 1.4 million shares for $257 million during the quarter. Avis Budget returned $355 million as dividends for the first time since its inception.
Currently, Avis Budget carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot of Some Business Services Stocks
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive second-quarter fiscal 2024 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of $2.13 beat the consensus estimate by 1.4% and grew 8.7% from the year-ago fiscal quarter’s figure. Total revenues of $4.67 billion surpassed the consensus estimate by 0.2% and improved 6.3% from the year-ago fiscal quarter’s reading on a reported basis as well on an organic constant-currency basis.
Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported better-than-expected third-quarter fiscal 2024 results.
Quarterly adjusted EPS of $1.41 surpassed the Zacks Consensus Estimate by 24.8% and exceeded the year-ago quarter by 31.8%. The company reported revenues of $2.57 billion, which beat the consensus estimate by 1.5% and increased 12.9% year over year. Revenues, excluding billable expenses, were $1.77 billion, up 13% year over year.
Waste Management Inc. (WM - Free Report) reported impressive fourth-quarter 2023 results, wherein earnings and revenues beat the respective Zacks Consensus Estimate.
Adjusted EPS of $1.74 surpassed the Zacks Consensus Estimate by 13.7% and improved 33.9% year over year. Total revenues of $5.2 billion beat the consensus estimate by a slight margin and increased 5.7% year over year.