Avis Budget Reports Larger-Than-Expected Q1 Loss
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy CAR?
Source: seekingalpha
- Financial Underperformance: Avis Budget's Q1 revenue increased by 4.3% year-over-year to $2.53 billion; however, the adjusted EBITDA remained at -$113 million, indicating significant challenges in profitability.
- Earnings Miss: The GAAP EPS of -$8.01 fell short of market expectations by $0.51, which could negatively impact investor confidence moving forward.
- Liquidity Improvement: Despite the losses, the company's liquidity position reached $915 million at the end of the quarter, with an additional $2.9 billion in fleet funding capacity, demonstrating some financial flexibility.
- Market Reaction: Following the disappointing earnings report, Avis Budget's stock dropped 17% in premarket trading, falling over 70% from its recent high, reflecting market concerns about its future performance.
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Analyst Views on CAR
Wall Street analysts forecast CAR stock price to fall
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 185.550
Low
142.00
Averages
142.00
High
142.00
Current: 185.550
Low
142.00
Averages
142.00
High
142.00
About CAR
Avis Budget Group, Inc. is a provider of mobility solutions through its three brands, Avis, Budget and Zipcar, as well as several other brands. Its brands offer a range of options, from car and truck rental to car sharing. Its segments include Americas and International. The Americas segment consists primarily of vehicle rental operations in North America, South America, Central America and the Caribbean and operates car-sharing operations in certain of these markets. The International segment consists of vehicle rental operations in Europe, the Middle East, Africa, Asia and Australasia, and operates car-sharing operations in certain of these markets. The Avis brand provides vehicle rental and other mobility solutions at price points generally above non-branded and value-branded vehicle rental companies and serves the premium commercial and leisure segments of the travel industry. Its other brands include Payless, Apex, AmicoBlu, Maggiore, Morini Rent, FranceCars, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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