CAR Earnings Prediction
The chart below shows how CAR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CAR sees a +2.18% change in stock price 10 days leading up to the earnings, and a +3.01% change 10 days following the report. On the earnings day itself, the stock moves by -0.60%. This data can give you a slight idea of what to expect for the next quarter's release.
CAR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.71B
-1.95%
-22.13%
Gross Margin
16.64%
-39.80%
-49.02%
Operating Margin
3.69%
-75.48%
-82.34%
Net Margin
-72.21%
-867.38%
-1155.70%
EPS
-55.62
-887.82%
-937.65%
No Data Available
CAR Earnings Analysis
Avis Budget Group Inc Corporation (CAR.O) Earnings Conference Call
Positive
Strong Financial Performance: Revenue for the fourth quarter reached $2.7 billion, while full-year revenue was $11.8 billion, demonstrating strong financial performance.
Americas Segment Revenue Performance: The Americas segment generated over $2.1 billion in revenue during the fourth quarter, with vehicle utilization exceeding 67%, indicating effective fleet management and demand alignment.
International Revenue Performance: International revenue was over $590 million in the fourth quarter, with vehicle utilization increasing by nearly three points year-over-year, showcasing improved operational efficiency.
Share Repurchase Commitment: The company repurchased approximately 450,000 shares of common stock for $37 million in the fourth quarter, reflecting a commitment to returning capital to shareholders.
Fleet Cost Reduction: The 2025 model year vehicle buy is expected to significantly reduce fleet costs, with projections indicating costs per unit per month could drop to around $300 by year-end, enhancing profitability.
Negative
Adjusted EBITDA Decline: Adjusted EBITDA loss of $101,000,000 in Q4, a significant decline from $311,000,000 in the same quarter last year, indicating operational challenges.
Asset Impairment Charge: A non-cash asset impairment charge of $2,500,000,000 was recorded due to accelerated fleet rotation, reflecting a substantial decrease in asset value and impacting overall financial health.
International Segment Loss: International segment reported a loss of $11,000,000 in adjusted EBITDA for Q4, driven by higher vehicle-related operating costs and a 1% decrease in rental days compared to the prior year.
Adjusted EBITDA Analysis: Full year adjusted EBITDA was $628,000,000, but excluding losses on sale and additional depreciation, it would have been approximately $850,000,000, highlighting the impact of strategic decisions on profitability.
Increased Financial Risk: The net corporate leverage ratio was reported at 7.8 times, temporarily elevated due to the impairment, indicating increased financial risk and potential challenges in managing debt levels.
CAR FAQs
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CAR Earning Call Sentiment
Earnings call transcript: Avis Q4 2024 sees unexpected EPS drop, stock falls
CAR.O
-1.46%Positive
The earnings call reveals significant challenges: decreased revenue, a substantial EBITDA loss due to impairment charges, and high leverage ratios. Despite efforts in fleet management and share repurchases, competitive pressures, supply chain issues, and economic uncertainties overshadow positives. Management's vague responses in the Q&A further amplify concerns. Given the market cap, these factors suggest a stock price decline in the range of -2% to -8% over the next two weeks.
