Avis Budget (CAR) Q2 Earnings & Revenues Surpass Estimates
Zacks Investment Research | Aug 07, 2019 10:57PM ET
Avis Budget Group, Inc. (NASDAQ:CAR) reported solid second-quarter 2019 results wherein both earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings per share of 79 cents beat the consensus mark by 6 cents and improved 39% on a year-over-year basis. The upside was driven by profitable rentals (as evident from its eighth consecutive quarter of increased leisure pricing in the Americas) and the company’s ability to capitalize on a strong residual fleet environment.
Total revenues of $2.34 billion came ahead of the consensus estimate by $5 million and increased 0.4% year over year due to a 2% increase in rental days, 2% increase in U.S. rental car pricing and $6 million increase in ancillary revenues. Overall per-unit fleet costs declined 8% year over year and utilization improved 70 basis points.
The company is benefiting from its partnerships with Lyft (NASDAQ:LYFT), Via, Fetch, Waymo and Otonomo. Recently, it entered into a new partnership with Uber (NYSE:UBER) to expand its ride-hailing fleet initiative. Such strategic moves open up ample opportunities within the mobility industry, improve profitability and enhance the company’s position as a global leader in mobility solution.
So far this year, shares of Avis Budget have gained 38.8% compared with 19.8% rise of the Zacks Investment Research
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