Car rental services provider Avis (NASDAQ: CAR) will be reporting results tomorrow after market close. Here’s what you need to know.
Avis Budget Group missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $2.71 billion, down 2% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates. It reported 61.82 million available rental days - car rental, down 4.2% year on year.
Is Avis Budget Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Avis Budget Group’s revenue to decline 1.9% year on year to $2.50 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$5.95 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Avis Budget Group has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Avis Budget Group’s peers in the ground transportation segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ryder delivered year-on-year revenue growth of 1.1%, meeting analysts’ expectations, and XPO reported a revenue decline of 3.2%, falling short of estimates by 0.9%. Ryder’s stock price was unchanged after the resultswhile XPO was up 6.7%.
Read our full analysis of Ryder’s results here and XPO’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 12.3% on average over the last month. Avis Budget Group is up 38.7% during the same time and is heading into earnings with an average analyst price target of $113.75 (compared to the current share price of $96.30).
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