Car rental services provider Avis (NASDAQ: CAR) will be reporting results this Tuesday afternoon. Here’s what you need to know.
Avis Budget Group missed analysts’ revenue expectations by 2.9% last quarter, reporting revenues of $2.43 billion, down 4.7% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates. It reported 56.82 million available rental days - car rental, down 6.4% year on year.
Is Avis Budget Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Avis Budget Group’s revenue to decline 1.7% year on year to $3.00 billion, in line with the 2.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.77 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Avis Budget Group’s peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Saia posted flat year-on-year revenue, beating analysts’ expectations by 1.2%, and Knight-Swift Transportation reported flat revenue, in line with consensus estimates. Knight-Swift Transportation’s stock price was unchanged following the results.
Read our full analysis of Saia’s results here and Knight-Swift Transportation’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 6.8% on average over the last month. Avis Budget Group is up 22.9% during the same time and is heading into earnings with an average analyst price target of $125 (compared to the current share price of $207.75).
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