July 17, 2024

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Avis Budget (CAR) Stock Rises 3.8% Since Q1 Earnings Beat

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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.

Zacks Investment Research

Zacks Investment Research

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

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Waste Management, Inc. (WM) : Free Stock Analysis Report

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