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Avis Budget (CAR) Q1 Earnings and Revenues Beat Estimates

Avis Budget Group, Inc. (CARreported impressive first-quarter 2023 results wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings of $7.72 per share beat both the Zacks Consensus Estimate and our estimate by more than 100% but plunged 22.7% year over year. Total revenues of $2.56 billion surpassed the consensus estimate by 2.2% and our estimate by 7.6% and improved 5.1% year over year. The top line was backed by strong demand and pricing.

Avis Budget has increased 8.1% in the year-to-date period as compared to its industry’s 10.2% increase.

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

 

Avis Budget Group, Inc. Price, Consensus and EPS Surprise
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 billion (78.8% of total revenues) were up 1% year over year.

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The International segment’s revenues of $541 million (21.2% of total revenues) were up 25% year over year.

Profitability

Adjusted EBITDA was $535 million, down 34% year over year. Adjusted EBITDA margin was 20.9%, compared with 33.3% in the year-ago quarter.

Adjusted EBITDA for the Americas segment was $516 million, down 36% year over year.

Internationally, adjusted EBITDA was $50 million, up more than 100% year over year. The uptick was backed by strong pricing and demand.

Balance Sheet and Cash Flow

Avis Budget exited first-quarter 2023 with cash and cash equivalents of $548 million, compared with $570 million at the end of the prior quarter. Corporate debt was $4.7 billion, compared with $4.67 billion at the end of the prior quarter.

CAR generated $819 million in net cash from operating activities in the reported quarter. Adjusted free cash flow was $30 million, while capital expenditures were $56 million in the reported quarter.

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.

Earnings Snapshot

Equifax EFX reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) came in at $1.43 per share, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.

Omnicom OMC reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.

Fiserv FISV reported impressive first-quarter 2023 results, wherein earnings and revenues beat the Zacks Consensus Estimate. Adjusted earnings per share (excluding 69 cents from non-recurring items) of $1.58 increased 12.9% year over year, beating the consensus mark by 1.3%. Earnings beat our estimate by 2.6%. Adjusted revenues of $4.28 billion beat the Zacks Consensus Estimate by 3% and increased 9.5% year over year. Revenues surpassed our estimates by 4.65%.

 

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Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

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Equifax, Inc. (EFX) : Free Stock Analysis Report

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