Car rental services provider Avis (NASDAQ: CAR) will be reporting earnings this Tuesday after the bell. Here’s what to look for.
Avis Budget Group beat analysts’ revenue expectations last quarter, reporting revenues of $2.53 billion, up 4.1% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. It reported 55.77 million available rental days - car rental, down 1.9% 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 grow 1.9% year on year, improving from its flat revenue 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 transportation and logistics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Knight-Swift Transportation delivered year-on-year revenue growth of 12.6%, beating analysts’ expectations by 2%, and Ryder reported revenues up 5%, topping estimates by 1.3%. Knight-Swift Transportation traded down 4.9% following the results while Ryder was also down 3.1%.
Read our full analysis of Knight-Swift Transportation’s results here and Ryder’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Avis Budget Group is up 2.8% during the same time and is heading into earnings with an average analyst price target of $138.86 (compared to the current share price of $159.05).
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