Car rental services provider Avis (NASDAQ: CAR) will be reporting results this Tuesday afternoon. Here’s what you need to know.
Avis Budget Group missed analysts’ revenue expectations last quarter, reporting revenues of $3.00 billion, down 1.3% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates. It reported 60.48 million available rental days - car rental, down 4.9% year on year.
Is Avis Budget Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Avis Budget Group’s revenue to decline 2% year on year, a reversal from the 1.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Avis Budget Group has missed Wall Street’s revenue estimates multiple 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. RXO delivered year-on-year revenue growth of 31.7%, beating analysts’ expectations by 2.6%, and Covenant Logistics reported revenues up 19.2%, topping estimates by 6.3%. RXO’s stock price was unchanged after the resultswhile Covenant Logistics was up 7.4%.
Read our full analysis of RXO’s results here and Covenant Logistics’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the ground transportation stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Avis Budget Group’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $116.43 (compared to the current share price of $107.65).
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