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Avis Budget (CAR) Q1 Earnings and Revenues Beat Estimates
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Avis Budget Group Inc.(CAR - Free Report) reported first-quarter 2020 adjusted loss of $1.40 per share, narrower than Zacks Consensus Estimate loss of $1.91 but wider than loss of 78 cents in the year-ago quarter.
Total revenues of $1.75 billion outpaced the consensus estimate by 0.9% but declined 8.7% year over year due to 7% decrease in rental days and a 1% decrease in revenues per day.
Revenues by Segment
Americas segment revenues of $1.26 billion decreased 5% year over year. The segment accounted for 72% of total revenues.
International segment revenues of $496 million went down 16% year over year. The segment contributed 28% to total revenues.
Profitability
Adjusted EBITDA loss was $87 million compared with a loss of $1 million in the prior-year quarter.
Adjusted EBITDA loss for Americas was $30 million against a gain of $35 million in the prior-year quarter. Internationally, adjusted EBITDA loss was $40 million, compared with a loss of $21 million in the prior-year quarter.
Avis Budget Group Inc Price, Consensus and EPS Surprise
Avis Budget exited first-quarter 2020 with cash and cash equivalents of $679 million compared with $686 million at the end of the prior quarter. Corporate debt was $3.51 billion compared with $3.44 billion at the end of the prior quarter.
The company generated $370 million of cash from operating activities in the reported quarter. Adjusted free cash flow totaled $81 million and capital expenditure was $49 million. The company repurchased shares worth $118 million in the reported quarter.
2020 Guidance
Revenues in April and May are expected to be around 80% lower, with a gradual recovery in June and improvement thereafter, considering that shelter-in-place restrictions get lifted and leisure travel resumes.
S&P Global Inc.(SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.
IQVIA Holdings Inc. (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.
Insperity, Inc.(NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.
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Avis Budget (CAR) Q1 Earnings and Revenues Beat Estimates
Avis Budget Group Inc.(CAR - Free Report) reported first-quarter 2020 adjusted loss of $1.40 per share, narrower than Zacks Consensus Estimate loss of $1.91 but wider than loss of 78 cents in the year-ago quarter.
Total revenues of $1.75 billion outpaced the consensus estimate by 0.9% but declined 8.7% year over year due to 7% decrease in rental days and a 1% decrease in revenues per day.
Revenues by Segment
Americas segment revenues of $1.26 billion decreased 5% year over year. The segment accounted for 72% of total revenues.
International segment revenues of $496 million went down 16% year over year. The segment contributed 28% to total revenues.
Profitability
Adjusted EBITDA loss was $87 million compared with a loss of $1 million in the prior-year quarter.
Adjusted EBITDA loss for Americas was $30 million against a gain of $35 million in the prior-year quarter. Internationally, adjusted EBITDA loss was $40 million, compared with a loss of $21 million in the prior-year quarter.
Avis Budget Group Inc Price, Consensus and EPS Surprise
Avis Budget Group Inc price-consensus-eps-surprise-chart | Avis Budget Group Inc Quote
Balance Sheet and Cash Flow
Avis Budget exited first-quarter 2020 with cash and cash equivalents of $679 million compared with $686 million at the end of the prior quarter. Corporate debt was $3.51 billion compared with $3.44 billion at the end of the prior quarter.
The company generated $370 million of cash from operating activities in the reported quarter. Adjusted free cash flow totaled $81 million and capital expenditure was $49 million. The company repurchased shares worth $118 million in the reported quarter.
2020 Guidance
Revenues in April and May are expected to be around 80% lower, with a gradual recovery in June and improvement thereafter, considering that shelter-in-place restrictions get lifted and leisure travel resumes.
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.
Performance of Other Business Services Companies
S&P Global Inc.(SPGI - Free Report) first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.
IQVIA Holdings Inc. (IQV - Free Report) first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.
Insperity, Inc.(NSP - Free Report) first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
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