Car rental services provider Avis (NASDAQ:CAR) will be reporting results tomorrow after market close. Here’s what to look for.
Avis Budget Group missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $3.05 billion, down 2.4% year on year. It was a disappointing quarter for the company, with a miss of analysts’ EBITDA 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 $3.53 billion, slowing from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $8.15 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 four times over the last two years.
Looking at Avis Budget Group’s peers in the ground transportation segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Heartland Express’s revenues decreased 11.9% year on year, missing analysts’ expectations by 3.2%, and Covenant Logistics reported flat revenue, falling short of estimates by 2.8%. Covenant Logistics’s stock price was unchanged following the results.
Read our full analysis of Heartland Express’s results here and Covenant Logistics’s results here.
Investors in the ground transportation segment have had steady hands going into earnings, with share prices flat over the last month. Avis Budget Group is up 1.8% during the same time and is heading into earnings with an average analyst price target of $127.78 (compared to the current share price of $87.40).
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