Avis Budget Group Beats Expectations But Takes A Step Back Anyway
Avis Budget Group (NAS: CAR) reported earnings on May 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Avis Budget Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share dropped significantly. GAAP loss per share grew.
Margins dropped across the board.
Avis Budget Group logged revenue of $1.69 billion. The five analysts polled by S&P Capital IQ wanted to see revenue of $1.69 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The eight earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS of $0.08 for Q1 were 33% lower than the prior-year quarter's $0.12 per share. GAAP EPS were -$0.43 for Q1 versus -$0.22 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.1%, 330 basis points worse than the prior-year quarter. Operating margin was 6.9%, 300 basis points worse than the prior-year quarter. Net margin was -2.7%, 130 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.99 billion. On the bottom line, the average EPS estimate is $0.68.
Next year's average estimate for revenue is $7.86 billion. The average EPS estimate is $2.33.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 255 members out of 389 rating the stock outperform, and 134 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 70 give Avis Budget Group a green thumbs-up, and 37 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Avis Budget Group is outperform, with an average price target of $29.88.
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The article Avis Budget Group Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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