Stock Story -
Car rental services provider Avis (NASDAQ:CAR) will be announcing earnings results tomorrow after the bell. Here's what investors should know.
Avis Budget Group beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $2.55 billion, flat year on year. It was a solid quarter for the company, with an impressive beat of analysts' volume estimates.
Is Avis Budget Group a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Avis Budget Group's revenue to be flat year on year at $3.14 billion, improving from the 3.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.61 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at Avis Budget Group's peers in the ground transportation segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Heartland Express's revenues decreased 10.3% year on year, meeting analysts' expectations, and XPO reported revenues up 8.5%, in line with consensus estimates. Heartland Express traded up 2.8% following the results while XPO was down 3.4%.
Read the full analysis of Heartland Express's and XPO's results on StockStory.
There has been positive sentiment among investors in the ground transportation segment, with share prices up 2.4% on average over the last month. Avis Budget Group is down 17.2% during the same time and is heading into earnings with an average analyst price target of $154.4 (compared to the current share price of $84.52).
