Avis Budget (CAR) Stock Rises 3.8% Since Q1 Earnings Beat
Avis Budget Group, Inc. CAR stock has gained 3.8% since its first-quarter 2022 earnings release on May 2. The price uptick can be attributed to better-than-expected earnings and revenue performance.
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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.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
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.
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.
Performance of Other Business Services Companies
Omnicom Group OMC reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.
Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax EFX reported better-than-expected first-quarter 2022 results.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management WM reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
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