Avis Budget Group, Inc. CAR reported solid fourth-quarter 2021 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $7.08 per share beat the Zacks Consensus Estimate by 9.6% and the year-ago quarter’s figure by more than 100%. Total revenues of $2.57 billion surpassed the consensus estimate by 8% and improved 90% year over year. The top line was backed by increased revenues per day and a rise in rental days.
Over the past year, shares of Avis Budget have gained 326% compared with 11.5% decline of the industry it belongs to.
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Revenues by Segment
Americas segment revenues of $2.10 billion were up more than 100% year over year. The segment contributed 82% of total revenues.
International segment revenues of $469 million were up 44% year over year. The segment contributed 18% of total revenues.
Adjusted EBITDA was at $683 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 $670 million, up more than 100% year over year. The uptick was backed by strong pricing, increased demand and sustained cost discipline.
Internationally, adjusted EBITDA was $32 million, up more than 100% year over year. The uptick was backed by strong pricing, continued recovering volume and cost-mitigating actions.
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 fourth-quarter 2021 with cash and cash equivalents of $534 million compared with $886 million at the end of the prior quarter. Corporate debt was $4.01 billion compared with $4.03 billion at the end of the prior quarter.
The company generated $943 million of net cash from operating activities in the reported quarter. Adjusted free cash outflow was $128 million and capital expenditures were $72 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
Robert Half International RHI delivered impressive fourth-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
Robert Half’s quarterly earnings of $1.51 per share beat the consensus mark by 5.6% and rose 79.8% year over year.
Robert Half’s revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis.
Automatic Data Processing ADP reported better-than-expected second-quarter fiscal 2022 results.
ADP’s adjusted earnings per share of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
ADP’s total revenues of $4.03 billion beat the consensus mark by 1.1% and improved 9% year over year on a reported basis as well as on an organic constant-currency basis.
Rollins ROL reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same.
Rollins’ adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Rollins’ revenues of $600.3 million beat the consensus mark by 3.3% and improved 11.9% year over year.
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