Car rental services provider Avis (NASDAQ: CAR) will be reporting results this Monday after the bell. Here’s what investors should know.
Avis Budget Group beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $3.04 billion, flat year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates. It reported 63.58 million available rental days - car rental, flat year on year.
Is Avis Budget Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Avis Budget Group’s revenue to be flat year on year at $3.46 billion, improving from the 2.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $8.14 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 Q3 results, giving us a hint as to what we can expect. Ryder posted flat year-on-year revenue, missing analysts’ expectations by 0.7%, and Covenant Logistics reported revenues up 3.1%, in line with consensus estimates. Ryder traded down 11.7% following the results while Covenant Logistics was also down 8.5%.
Read our full analysis of Ryder’s results here and Covenant Logistics’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 3.7% on average over the last month. Avis Budget Group is down 2.1% during the same time and is heading into earnings with an average analyst price target of $146.75 (compared to the current share price of $157.88).
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