Avis Budget (CAR) Q2 Loss Wider-Than-Expected, Sales Miss
Avis Budget Group Inc. CAR reported second-quarter 2020 adjusted loss of $5.60 per share, wider than Zacks Consensus Estimate loss of $5.58. The company reported earnings of 79 cents per share in the year-ago quarter.
Total revenues of $760 million missed the consensus estimate by 8.3% but declined 67% year over year due to 59% decrease in rental days and 20% decrease in revenues per day.
The company expects velocity of improvement to moderate in the third quarter but anticipates utilization will continue to improve. Also, Avis Budget anticipates cash flow and Adjusted EBITDA to be both positive for the rest of 2020.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Revenues by Segment
Americas segment revenues of $565 million declined 65% year over year. The segment contributed 74% to total revenues.
International segment revenues of $195 million fell 73% year over year. The segment contributed 26% to total revenues.
Profitability
Adjusted loss before interest, taxes, depreciation and amortization was $382 million against loss of $175 million in the prior-year quarter.
Adjusted loss before interest, taxes, depreciation and amortization for Americas was $233 million against gain of $152 million in the prior-year quarter. Internationally, adjusted loss before interest, taxes, depreciation and amortization was $140 million, compared with the profit of $39 million in the prior-year quarter.
Balance Sheet and Cash Flow
Avis Budget exited second-quarter 2020 with cash and cash equivalents of $1.26 billion compared with $679 million at the end of the prior quarter. Corporate debt was $3.9 billion compared with $3.44 billion at the end of the prior quarter.
The company generated $10 million of cash from operating activities in the reported quarter. Adjusted free cash flow totaled $245 million and capital expenditure was $15 million.
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
Equifax EFX reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis.
IQVIA Holdings IQV reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.
Robert Half RHI reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17% but were down 58% year over year.
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