AVIS BUDGET Reports Record Earnings for Second Quarter of FY2023
August 24, 2023
🌥️Earnings Overview
On July 31 2023, AVIS BUDGET ($NASDAQ:CAR) reported its earnings results for the second quarter of FY2023, which ended on June 30 2023. The total revenue for the quarter was USD 3123.0 million, a 3.7% decrease from the same period in the previous year. Net income was reported at USD 435.0 million, a 44.1% decrease from the year before.
Market Price
The stock opened at $222.1 and closed at $220.3, down 1.0% from its previous closing price of 222.4. The strong results were driven by double digit growth in the car rental segment as well as an increase in ancillary revenues. The company’s CEO, Ronald Nelson, noted that the latest results highlighted the resilience of the Avis BUDGET brand in spite of the economic and market volatility. He also added that the company is well-positioned to continue to deliver on its plans to drive sustainable, profitable growth both in the short and long term.
The company’s strong financial performance was aided by its focus on cost reduction initiatives and the successful implementation of technological improvements and digital solutions that have improved customer experience and improved efficiency. Overall, Avis BUDGET’s second quarter earnings report shows that the company remains committed to its strategic objectives of delivering strong financial performance while improving the customer experience. As a result of the strong results, investors remain optimistic about the company’s prospects going forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Avis Budget. More…
| Total Revenues | Net Income | Net Margin |
| 12.52k | 2.2k | 17.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Avis Budget. More…
| Operations | Investing | Financing |
| 4.12k | -5.64k | 1.52k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Avis Budget. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.39k | 27.83k | -3.24 |
Key Ratios Snapshot
Some of the financial key ratios for Avis Budget are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 18.7% | 95.5% | 25.0% |
| FCF Margin | ROE | ROA |
| -2.2% | -682.2% | 7.1% |
Analysis
At GoodWhale, we conducted an analysis of AVIS BUDGET‘s fundamentals. Our Star Chart shows that AVIS BUDGET is strong in asset, medium in growth, profitability and weak in dividend. After our analysis, we classified AVIS BUDGET as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who have a moderate to long term investment horizon may be interested in AVIS BUDGET. The company currently has an intermediate health score of 5/10, considering its cashflows and debt – indicating that they may be able to pay off debt and fund future operations. More…
Peers
Its competitors include Hertz Global Holdings Inc, Localiza Rent A Car SA, and HyreCar Inc. Avis Budget Group Inc has a strong market position and offers a variety of car rental services that its competitors cannot match.
– Hertz Global Holdings Inc ($NASDAQ:HTZ)
Hertz Global Holdings Inc is a holding company that operates through its subsidiaries. The company’s principal business is car rental. It has a market cap of 6.63B as of 2022 and a Return on Equity of 70.21%. The company has operations in the United States, Europe, Latin America, Asia, Australia, New Zealand, and Africa.
– Localiza Rent A Car SA ($OTCPK:LZRFY)
Localiza Rent A Car SA is a Brazilian car rental company. The company has a market cap of 12.8B as of 2022 and a return on equity of 32.33%. Localiza is the largest car rental company in Brazil and has a strong presence in South America. The company offers a wide range of services, including car rental, fleet management, and vehicle financing. Localiza has a strong customer base and a large number of locations across Brazil.
– HyreCar Inc ($NASDAQ:HYRE)
HyreCar Inc. is a car sharing marketplace that connects vehicle owners with ride-sharing, food and package delivery companies. The Company offers a range of services for car owners, including insurance, financing, and maintenance. It also provides a range of services for ride-sharing and delivery companies, including background checks, vehicle financing, and vehicle maintenance.
Summary
AVIS BUDGET‘s second-quarter earnings report for FY2023 showed a 3.7% decrease in total revenue and a 44.1% decrease in net income year-over-year. Investors may be concerned, however, there are a few positives to take away from the report. Overall, while investors should take note of the decrease in revenue and profits, there are still signs that AVIS BUDGET remains a viable investment option.
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