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Despite the earnings miss, the stock has gained 12% since the earnings release on Oct. 31, 2024.
CAR’s earnings of $6.7 per share missed the Zacks Consensus Estimate by 22.2% and decreased 60.4% from the year-ago quarter’s actual. Total revenues of $3.5 billion missed the consensus estimate by 2.3% and declined 2.4% on a year-over-year basis.
Avis Budget’s shares have declined 47.6% in the year-to-date period compared with 4.6% decrease of the industry and 27.7% growth of the Zacks S&P 500 composite.
YTD Price Performance
Image Source: Zacks Investment Research
Avis Budget’s Segmental Revenues
Revenues from the Americas amounted to $2.6 billion, indicating a fall of 4% from the year-ago quarter. The metric missed our estimate of $2.7 billion.
International revenues were $840 million, up 1% on a year-over-year basis. However, the figure missed our expectation of $845.6 million. Strong international inbound and intra-European cross-border travel drove this region’s revenues.
CAR’s Profitability
Adjusted EBITDA was $503 million, down 45% from third-quarter 2023. The Americas segment reported adjusted EBITDA of $384 million, which declined 48% from the year-ago quarter. Internationally, adjusted EBITDA of $139 million decreased 29%.
Balance Sheet and Cash Flow of CAR
Avis Budget exited the third quarter with cash and cash equivalents of $602 million compared with $511 million at the end of the second quarter of 2024. Corporate debt amounted to $6 billion compared with $5.3 billion reported in the preceding quarter.
CAR generated $1.3 billion in net cash from operating activities. Adjusted free cash flow utilized amounted to $600 million. Capital expenditures were $40 million.
Avis Budget currently carries a Zacks Rank #5 (Strong Sell).
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2024 results.
OMC's earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion outpaced the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.
FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.
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Avis Budget Stock Appreciates 12% Despite Earnings Miss in Q3
Avis Budget Group, Inc. (CAR - Free Report) reported lower-than-expected third-quarter 2024 results.
See Zacks Earnings Calendar to stay ahead of market-making news.
Despite the earnings miss, the stock has gained 12% since the earnings release on Oct. 31, 2024.
CAR’s earnings of $6.7 per share missed the Zacks Consensus Estimate by 22.2% and decreased 60.4% from the year-ago quarter’s actual. Total revenues of $3.5 billion missed the consensus estimate by 2.3% and declined 2.4% on a year-over-year basis.
Avis Budget’s shares have declined 47.6% in the year-to-date period compared with 4.6% decrease of the industry and 27.7% growth of the Zacks S&P 500 composite.
YTD Price Performance
Avis Budget’s Segmental Revenues
Revenues from the Americas amounted to $2.6 billion, indicating a fall of 4% from the year-ago quarter. The metric missed our estimate of $2.7 billion.
International revenues were $840 million, up 1% on a year-over-year basis. However, the figure missed our expectation of $845.6 million. Strong international inbound and intra-European cross-border travel drove this region’s revenues.
CAR’s Profitability
Adjusted EBITDA was $503 million, down 45% from third-quarter 2023. The Americas segment reported adjusted EBITDA of $384 million, which declined 48% from the year-ago quarter. Internationally, adjusted EBITDA of $139 million decreased 29%.
Balance Sheet and Cash Flow of CAR
Avis Budget exited the third quarter with cash and cash equivalents of $602 million compared with $511 million at the end of the second quarter of 2024. Corporate debt amounted to $6 billion compared with $5.3 billion reported in the preceding quarter.
CAR generated $1.3 billion in net cash from operating activities. Adjusted free cash flow utilized amounted to $600 million. Capital expenditures were $40 million.
Avis Budget currently 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 CAR’s Peers
Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2024 results.
RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2024 results.
OMC's earnings of $2 per share beat the consensus estimate by 3.1% and rose 9.1% from the year-ago quarter. Total revenues of $3.9 billion outpaced the consensus mark by 2.3% and grew 8.5% on a year-over-year basis.
Fiserv, Inc. (FI - Free Report) reported mixed third-quarter 2024 results.
FI’s adjusted earnings per share (excluding $1.3 from non-recurring items) of $2.3 beat the consensus mark by 2.2% and gained 17.4% year over year. Adjusted revenues of $4.9 billion missed the consensus estimate by a slight margin but rose a tad on a year-over-year basis.