We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
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.