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.
CAR Q1 Earnings Miss on Higher Fleet Charges, Revenues Beat
Read MoreHide Full Article
Key Takeaways
Avis Budget posted a $8.01-per-share Q1 loss, missing estimates despite revenues rising 4.1% y/y to $2.53B.
CAR logged $664M in depreciation/lease charges and $229M in vehicle interest, weighing on results.
CAR raised the 2026 adjusted EBITDA guidance to $850-$1.0B; sees fleet costs of $315-$325 per unit per month.
Avis Budget Group, Inc. (CAR - Free Report) posted a first-quarter 2026 loss of $8.01 per share, narrower than the year-ago loss of $14.35. However, results missed the Zacks Consensus Estimate of a $6.82 loss by 17.5%.
Quarterly revenues came in at $2.53 billion, up 4.1% year over year and beating the consensus mark of $2.44 billion by 3.7%. Operationally, vehicle utilization reached 70.1% companywide, a first-quarter record for both segments in more than 15 years.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
CAR’s Bottom Line Still Pressured by Cost Structure
Avis Budget reported a net loss of $234 million in the quarter compared with a $504 million net loss a year ago. On an adjusted basis, the company posted an adjusted EBITDA loss of $113 million compared with an adjusted EBITDA loss of $93 million in the prior-year period.
Expense lines remained heavy for an asset-intensive model. Vehicle depreciation and lease charges, net, totaled $664 million, while selling, general and administrative expenses were $341 million. Vehicle interest, net, rose to $229 million, reflecting the financing load tied to the fleet.
CAR’s revenue performance reflected better pricing and a more selective approach to volume. Total rental days dipped 1% year over year to 39.08 million, while revenues per day, excluding exchange rate effects, improved 3% to $63.43.
Segment results stayed constructive on the top line. Americas’ revenues rose 2.9% year over year to $1.96 billion, supported by improved pricing in the core U.S. rental car business. International revenues increased 8.6% to $568 million, even as the business continued to refine its revenue mix.
CAR’s Pricing Discipline & Fleet Actions Show Early Payoff
Management pointed to early progress from fleet reduction and supply discipline, with the benefits starting to appear in operational performance. In the Americas, rental days were essentially flat year over year, while revenues per day increased 2.8%, marking the first quarter of positive pricing in that region since late 2022.
The company also leaned into fleet right-sizing as used vehicle demand came in stronger than expected. Monthly depreciation in the Americas averaged about $380 for the quarter, starting above $500 in January and improving into the mid-$300s by March. Management said it exited the quarter with its healthiest fleet position since the pandemic and a fleet that is roughly 20% younger.
Avis Budget Raises Outlook as Liquidity Remains Adequate
CAR ended March 31 with $915 million in total liquidity and $2.9 billion in additional capacity across its ABS facilities. Management cited a net corporate leverage ratio of 7.6 times and expects to reduce it to below 6 by year-end through earnings improvement and continued debt repayment.
The company also lifted its full-year outlook. The adjusted EBITDA guidance was raised to $850-$1 billion. On fleet costs, the company’s outlook calls for per-unit fleet costs per month of $340 in the second quarter of 2026 and $315-$325 for 2026.
CAR’s Cash Flow Improves & Capital Priorities Shift to Debt
Avis Budget generated net cash provided by operating activities of $434 million in the quarter. The adjusted free cash flow was $80 million against an adjusted free cash flow use of $492 million in the prior-year quarter. Capital expenditure was $42 million, with the company also noting $1 million of cloud computing implementation costs included in capex.
Capital allocation is tilting more conservatively. Management emphasized a continued focus on debt repayment while funding capital expenditure aimed at operational efficiencies, cost reduction and margin expansion. The quarter also included $7 million of common stock repurchases, but the stated priority remains restoring leverage toward more normalized levels over time.
Gartner, Inc. (IT - Free Report) delivered first-quarter 2026 adjusted earnings of $3.32 per share, beating the Zacks Consensus Estimate of $2.99 by 11%. Adjusted earnings increased 11.4% from the year-ago quarter.
Total revenues were $1.51 billion, falling 1.5% year over year and lagging the consensus estimate of $1.52 billion by 0.6%.
Fiserv, Inc. (FISV - Free Report) reported first-quarter 2026 adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.57 by 14%. Adjusted earnings declined 16.4% from the year-ago quarter.
The revenue performance was softer. Adjusted revenues were $4.68 billion, missing the consensus mark of $4.76 billion by 1.7% and decreasing 8.9% year over year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
CAR Q1 Earnings Miss on Higher Fleet Charges, Revenues Beat
Key Takeaways
Avis Budget Group, Inc. (CAR - Free Report) posted a first-quarter 2026 loss of $8.01 per share, narrower than the year-ago loss of $14.35. However, results missed the Zacks Consensus Estimate of a $6.82 loss by 17.5%.
Quarterly revenues came in at $2.53 billion, up 4.1% year over year and beating the consensus mark of $2.44 billion by 3.7%. Operationally, vehicle utilization reached 70.1% companywide, a first-quarter record for both segments in more than 15 years.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
CAR’s Bottom Line Still Pressured by Cost Structure
Avis Budget reported a net loss of $234 million in the quarter compared with a $504 million net loss a year ago. On an adjusted basis, the company posted an adjusted EBITDA loss of $113 million compared with an adjusted EBITDA loss of $93 million in the prior-year period.
Expense lines remained heavy for an asset-intensive model. Vehicle depreciation and lease charges, net, totaled $664 million, while selling, general and administrative expenses were $341 million. Vehicle interest, net, rose to $229 million, reflecting the financing load tied to the fleet.
Avis Budget’s Mix Helped Revenue Despite Uneven Volumes
CAR’s revenue performance reflected better pricing and a more selective approach to volume. Total rental days dipped 1% year over year to 39.08 million, while revenues per day, excluding exchange rate effects, improved 3% to $63.43.
Segment results stayed constructive on the top line. Americas’ revenues rose 2.9% year over year to $1.96 billion, supported by improved pricing in the core U.S. rental car business. International revenues increased 8.6% to $568 million, even as the business continued to refine its revenue mix.
CAR’s Pricing Discipline & Fleet Actions Show Early Payoff
Management pointed to early progress from fleet reduction and supply discipline, with the benefits starting to appear in operational performance. In the Americas, rental days were essentially flat year over year, while revenues per day increased 2.8%, marking the first quarter of positive pricing in that region since late 2022.
The company also leaned into fleet right-sizing as used vehicle demand came in stronger than expected. Monthly depreciation in the Americas averaged about $380 for the quarter, starting above $500 in January and improving into the mid-$300s by March. Management said it exited the quarter with its healthiest fleet position since the pandemic and a fleet that is roughly 20% younger.
Avis Budget Raises Outlook as Liquidity Remains Adequate
CAR ended March 31 with $915 million in total liquidity and $2.9 billion in additional capacity across its ABS facilities. Management cited a net corporate leverage ratio of 7.6 times and expects to reduce it to below 6 by year-end through earnings improvement and continued debt repayment.
The company also lifted its full-year outlook. The adjusted EBITDA guidance was raised to $850-$1 billion. On fleet costs, the company’s outlook calls for per-unit fleet costs per month of $340 in the second quarter of 2026 and $315-$325 for 2026.
CAR’s Cash Flow Improves & Capital Priorities Shift to Debt
Avis Budget generated net cash provided by operating activities of $434 million in the quarter. The adjusted free cash flow was $80 million against an adjusted free cash flow use of $492 million in the prior-year quarter. Capital expenditure was $42 million, with the company also noting $1 million of cloud computing implementation costs included in capex.
Capital allocation is tilting more conservatively. Management emphasized a continued focus on debt repayment while funding capital expenditure aimed at operational efficiencies, cost reduction and margin expansion. The quarter also included $7 million of common stock repurchases, but the stated priority remains restoring leverage toward more normalized levels over time.
CAR currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Gartner, Inc. (IT - Free Report) delivered first-quarter 2026 adjusted earnings of $3.32 per share, beating the Zacks Consensus Estimate of $2.99 by 11%. Adjusted earnings increased 11.4% from the year-ago quarter.
Total revenues were $1.51 billion, falling 1.5% year over year and lagging the consensus estimate of $1.52 billion by 0.6%.
Fiserv, Inc. (FISV - Free Report) reported first-quarter 2026 adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.57 by 14%. Adjusted earnings declined 16.4% from the year-ago quarter.
The revenue performance was softer. Adjusted revenues were $4.68 billion, missing the consensus mark of $4.76 billion by 1.7% and decreasing 8.9% year over year.