Avis Budget Group
The 10-second takeaway
For the quarter ended June 30 (Q2), Avis Budget Group missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved significantly.
Gross margins were steady, operating margins improved, and net margins increased.
Avis Budget Group booked revenue of $1.87 billion. The five analysts polled by S&P Capital IQ hoped for sales of $1.91 billion on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $1.41 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.94. The eight earnings estimates compiled by S&P Capital IQ forecast $0.70 per share. GAAP EPS of $0.66 for Q2 were 57% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.0%, about the same as the prior-year quarter. Operating margin was 17.0%, 10 basis points better than the prior-year quarter. Net margin was 4.2%, 50 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.19 billion. On the bottom line, the average EPS estimate is $1.54.
Next year's average estimate for revenue is $7.34 billion. The average EPS estimate is $2.52.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 240 members out of 376 rating the stock outperform, and 136 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Avis Budget Group a green thumbs-up, and 49 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avis Budget Group is buy, with an average price target of $23.67.
- Add Avis Budget Group to My Watchlist.