Market Overview

Earnings Outlook For Avis Budget Group

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Avis Budget Group (NASDAQ: CAR) unveils its next round of earnings this Thursday, October 29. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Avis Budget Group modeled for quarterly EPS of $0.07 on revenue of $1.45 billion. In the same quarter last year, Avis Budget Group reported earnings per share of $2.96 on sales of $2.75 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 97.64%. Revenue would be down 47.33% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -5.84 -1.84 0.50 3.65
EPS Actual -5.60 -1.40 0.73 2.96
Revenue Estimate 719.44 M 1.77 B 2.08 B 2.86 B
Revenue Actual 760.00 M 1.75 B 2.16 B 2.75 B

Stock Performance

Over the last 52-week period, shares of Avis Budget Group are up 15.79%.

Do not be surprised to see the stock move on comments made during its conference call. Avis Budget Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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