ReutersReuters

Car rental firm Avis Budget beats Q3 revenue estimates

RefinitivLess than 1 min read

Overview

  • Avis Budget Q3 revenue of $3.5 bln beats analyst expectations

  • Adjusted EBITDA for Q3 beats estimates, driven by lower fleet costs

  • Company extended $1.1 bln term loan maturity to July 2032

Outlook

  • Company did not provide specific guidance for future quarters or full year

Result Drivers

  • RENTAL DAYS - Increase in rental days contributed to revenue growth, though revenue per day decreased

  • LOWER FLEET COSTS - Lower fleet costs drove Adjusted EBITDA growth in the Americas and International segments

  • LOAN MATURITY EXTENSION - Extended $1.1 bln term loan maturity to July 2032, improving financial flexibility

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$3.52 bln

$3.45 bln (6 Analysts)

Q3 EPS

$10.11

Q3 Net Income

$359 mln

Q3 Adjusted EBITDA

Beat

$559 mln

$542.34 mln (7 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the passenger transportation, ground & sea peer group is "buy."

  • Wall Street's median 12-month price target for Avis Budget Group Inc is $147.50, about 6.4% below its October 24 closing price of $157.01

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

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