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Avis Budget Group (CAR) Q4 Earnings Report Preview: What To Look For

CAR Cover Image

Car rental services provider Avis (NASDAQ: CAR) will be reporting earnings this Wednesday after market hours. Here’s what to expect.

Avis Budget Group beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $3.52 billion, up 1.1% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates. It reported 68.65 million available rental days - car rental, up 1.4% 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, analysts are expecting Avis Budget Group’s revenue to grow 1.3% year on year to $2.74 billion, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.38 per share.

Avis Budget Group Total Revenue

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 delivered year-on-year revenue growth of 4.7%, beating analysts’ expectations by 2.9%, and Old Dominion Freight Line reported a revenue decline of 5.7%, in line with consensus estimates. XPO traded up 13.4% following the results while Old Dominion Freight Line was also up 6.5%.

Read our full analysis of XPO’s results here and Old Dominion Freight Line’s results here.

There has been positive sentiment among investors in the ground transportation segment, with share prices up 8.1% on average over the last month. Avis Budget Group is down 2% during the same time and is heading into earnings with an average analyst price target of $139.43 (compared to the current share price of $119).

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