Avis Budget Group Q4 Revenue Seen Growing 1.3% to $2.74 Billion

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Avis Budget Group’s Q4 revenue is expected to rise 1.3% year-on-year to $2.74 billion, marking a reversal from a 2% decline in the same quarter last year. In the prior quarter, the company generated $3.52 billion in revenue (up 1.1% YoY) with a 1.8% revenue beat and 68.65 million rental days (up 1.4%).

1. Q4 Earnings Outlook

Analysts forecast Avis Budget Group’s Q4 revenue at $2.74 billion, up 1.3% year-on-year, and an adjusted loss of $0.38 per share, reversing a 2% revenue decline in the same quarter last year.

2. Prior Quarter Results

In the previous quarter, the company reported $3.52 billion in revenue, a 1.1% increase year-on-year, beating analysts’ expectations by 1.8%, and logged 68.65 million available rental days (car), up 1.4%.

3. Analyst Estimates and Peer Comparison

Analysts have maintained their revenue and EPS estimates over the past 30 days; Avis has missed revenue forecasts five times in the last two years. Peer XPO achieved 4.7% revenue growth and a 2.9% beat, while Old Dominion Freight Line saw a 5.7% decline in revenue, both stocks rallied post-results.

4. Market Sentiment and Price Targets

Ground transportation stocks gained 8.1% on average last month, whereas Avis shares fell 2%. The average analyst price target of $139.43 versus the current ~$119 level implies roughly 17% potential upside.

Sources

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