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Avis Budget (CAR) Q1 Earnings and Revenues Beat Estimates

Avis Budget Group Inc.CAR reported first-quarter 2020 adjusted loss of $1.40 per share, narrower than Zacks Consensus Estimate loss of $1.91 but wider than loss of 78 cents in the year-ago quarter.

Total revenues of $1.75 billion outpaced the consensus estimate by 0.9% but declined 8.7% year over year due to 7% decrease in rental days and a 1% decrease in revenues per day.

Revenues by Segment

Americas segment revenues of $1.26 billion decreased 5% year over year. The segment accounted for 72% of total revenues.

International segment revenues of $496 million went down 16% year over year. The segment contributed 28% to total revenues.

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Profitability

Adjusted EBITDA loss was $87 million compared with a loss of $1 million in the prior-year quarter.

Adjusted EBITDA loss for Americas was $30 million against a gain of $35 million in the prior-year quarter. Internationally, adjusted EBITDA loss was $40 million, compared with a loss of $21 million in the prior-year quarter.

Avis Budget Group Inc Price, Consensus and EPS Surprise

 

Avis Budget Group Inc Price, Consensus and EPS Surprise
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 2020 with cash and cash equivalents of $679 million compared with $686 million at the end of the prior quarter. Corporate debt was $3.51 billion compared with $3.44 billion at the end of the prior quarter.

The company generated $370 million of cash from operating activities in the reported quarter. Adjusted free cash flow totaled $81 million and capital expenditure was $49 million. The company repurchased shares worth $118 million in the reported quarter.

2020 Guidance

Revenues in April and May are expected to be around 80% lower, with a gradual recovery in June and improvement thereafter, considering that shelter-in-place restrictions get lifted and leisure travel resumes.

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

S&P Global Inc.SPGI first-quarter 2020 adjusted earnings per share of $2.73 beat the consensus mark by 15.7% and improved 29.4% year over year on the back of revenue growth, benefits of productivity initiatives and reduced business travel. The stock currently carries a Zacks Rank #3.

IQVIA Holdings Inc. IQV first-quarter 2020 adjusted earnings per share of $1.50 beat the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure lies within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank #3.

Insperity, Inc.NSP first-quarter 2020 adjusted earnings of $1.70 per share beat the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher end of the guided range of $1.61-$1.70. The stock currently carries a Zacks Rank #3.

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Avis Budget Group Inc (CAR) : Free Stock Analysis Report
 
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