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Why Is Avis Budget (CAR) Down 33.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have lost about 33.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avis Budget due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Avis Budget reported solid first-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $9.99 per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s reported figure by more than 100%. Total revenues of $2.43 billion surpassed the consensus estimate by 11.3% and improved 77.3% year over year. The top line was backed by increased revenues per day and a rise in rental days.
Revenues by Segment
Americas segment revenues of $2.00 billion were up 85% year over year. The segment contributed 82% of total revenues.
International segment revenues of $432 million were up 48% year over year. The segment contributed 18% of total revenues.
Profitability
Adjusted EBITDA was at $810 million, up more than 100% year over year. Adjusted EBITDA margin was 26.6% compared with 5.5% in the year-ago quarter.
Adjusted EBITDA for Americas was $810 million, up more than 100% year over year. The uptick was backed by strong pricing and increased demand.
Internationally, adjusted EBITDA was $23 million, up more than 100% year over year. The uptick was backed by strong pricing, volume and cost-mitigating actions.
Balance Sheet and Cash Flow
Avis Budget exited first-quarter 2022 with cash and cash equivalents of $550 million compared with $534 million at the end of the prior quarter. Corporate debt was $4.71 billion compared with $4.01 billion at the end of the prior quarter.
The company generated $1.15 billion of net cash from operating activities in the reported quarter. Adjusted free cash flow was $601 million and capital expenditures were $46 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 53.17% due to these changes.
VGM Scores
Currently, Avis Budget has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Why Is Avis Budget (CAR) Down 33.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Avis Budget Group (CAR - Free Report) . Shares have lost about 33.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avis Budget due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Avis Budget Surpasses Q1 Earnings & Revenues Estimates
Avis Budget reported solid first-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $9.99 per share beat the Zacks Consensus Estimate as well as the year-ago quarter’s reported figure by more than 100%. Total revenues of $2.43 billion surpassed the consensus estimate by 11.3% and improved 77.3% year over year. The top line was backed by increased revenues per day and a rise in rental days.
Revenues by Segment
Americas segment revenues of $2.00 billion were up 85% year over year. The segment contributed 82% of total revenues.
International segment revenues of $432 million were up 48% year over year. The segment contributed 18% of total revenues.
Profitability
Adjusted EBITDA was at $810 million, up more than 100% year over year. Adjusted EBITDA margin was 26.6% compared with 5.5% in the year-ago quarter.
Adjusted EBITDA for Americas was $810 million, up more than 100% year over year. The uptick was backed by strong pricing and increased demand.
Internationally, adjusted EBITDA was $23 million, up more than 100% year over year. The uptick was backed by strong pricing, volume and cost-mitigating actions.
Balance Sheet and Cash Flow
Avis Budget exited first-quarter 2022 with cash and cash equivalents of $550 million compared with $534 million at the end of the prior quarter. Corporate debt was $4.71 billion compared with $4.01 billion at the end of the prior quarter.
The company generated $1.15 billion of net cash from operating activities in the reported quarter. Adjusted free cash flow was $601 million and capital expenditures were $46 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 53.17% due to these changes.
VGM Scores
Currently, Avis Budget has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avis Budget has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.