Avis Budget Group, Inc. CAR reported lower-than-expected second-quarter 2024 results.
The stock has increased 6.3% since its earnings release on Aug 5 despite the earnings and revenue miss.
CAR’s earnings of 41 cents per share missed the Zacks Consensus Estimate by 84.2% and decreased 96.3% from the year-ago quarter’s actual. Total revenues of $3 billion missed the consensus estimate by 4% and decreased 2.4% on a year-over-year basis.
Avis Budget’s shares have declined 47% in the past six months compared with the 7.8% decrease of the industry. The Zacks S&P 500 composite has risen 3.8% in the said time frame.
Avis Budget Group, Inc. Price and EPS Surprise
Avis Budget Group, Inc. price-eps-surprise | Avis Budget Group, Inc. Quote
Segmental Revenues
Revenues from the Americas amounted to $2.4 billion, reflecting a decrease of 3% from the year-ago quarter. The metric was in line with our estimate.
International revenues were $687 million, up 3% on a year-over-year basis. However, the figure missed our estimate of $716.3 million. The segment is likely to have been driven by improvements in inter-European cross-border travel and significant strength in international inbound volume.
Profitability
Adjusted EBITDA was $214 million, down 71% from second-quarter 2023. The Americas segment reported an adjusted EBITDA of $186 million, which declined 71% from the year-ago quarter. Internationally, adjusted EBITDA of $48 million plunged 62% on a year-over-year basis.
Balance Sheet and Cash Flow
Avis Budget exited the second quarter with cash and cash equivalents of $511 million compared with $522 million at the end of the first quarter of 2024. Corporate debt amounted to $5.3 billion versus $5.4 billion reported in the preceding quarter.
CAR generated $884 million in net cash from operating activities. Adjusted free cash flow amounted to $171 million. Capital expenditures were $52 million.
Avis Budget currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
S&P Global Inc. SPGI reported impressive second-quarter results.
SPGI’s adjusted EPS (excluding 82 cents from non-recurring items) of $4.04 surpassed the Zacks Consensus Estimate by 10.1% and increased 29.5% year over year. Revenues of $3.5 billion beat the consensus estimate by 3.4% and improved 14.5% year over year.
WEX Inc. WEX reported mixed second-quarter 2024 results.
Quarterly adjusted earnings (excluding 2.1 cents from non-recurring items) of $3.9 per share surpassed the Zacks Consensus Estimate by 2.9% and increased 7.7% from the year-ago quarter’s actual. Revenues of $673.5 million missed the consensus estimate marginally but rose 8.4% on a year-over-year basis.
TransUnion TRU reported impressive second-quarter 2024 results.
TRU’s quarterly adjusted earnings (adjusting 55 cents from non-recurring items) of 99 cents per share beat the consensus mark by 1% and increased 15.1% on a year-over-year basis. Total revenues of $1 billion beat the consensus mark by 1.6% and grew 7.5% from the year-ago quarter’s level.
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