Car rental services provider Avis (NASDAQ:CAR) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Avis Budget Group missed analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $3.48 billion, down 2.4% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.
Is Avis Budget Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Avis Budget Group’s revenue to be flat year on year at $2.74 billion, in line with its flat revenue from the same quarter last year. Adjusted loss is expected to come in at -$0.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Avis Budget Group has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Avis Budget Group’s peers in the ground transportation segment, some have already reported their Q4 results, giving us a hint as to what we can expect. XPO posted flat year-on-year revenue, meeting analysts’ expectations, and ArcBest reported a revenue decline of 8.1%, in line with consensus estimates. XPO traded up 8.6% following the results while ArcBest was down 3%.
Read our full analysis of XPO’s results here and ArcBest’s results here.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 2.6% on average over the last month. Avis Budget Group is up 5.1% during the same time and is heading into earnings with an average analyst price target of $122.63 (compared to the current share price of $88.73).
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