Avis Budget Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Avis Budget Group beat expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted to a loss.
Gross margin expanded, operating margin shrank, and net margin dropped.
Avis Budget Group logged revenue of $1.62 billion. The two analysts polled by S&P Capital IQ wanted to see a top line of $1.59 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $1.24 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 $0.12. The three earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS were -$0.22 for Q1 compared to $0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.4%, 110 basis points better than the prior-year quarter. Operating margin was 9.9%, 10 basis points worse than the prior-year quarter. Net margin was -1.4%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $7.45 billion. The average EPS estimate is $2.53.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 243 members out of 371 rating the stock outperform, and 128 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 54 give Avis Budget Group a green thumbs-up, and 38 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 $20.19.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.