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Avis Budget Stock Declines 22% Since Reporting Q2 Earnings Miss
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Key Takeaways
{\"0\":\"CAR\'s Q2 EPS of $0.10 missed estimates by 95.1% and fell 75.6% from the prior-year quarter.\",\"1\":\"Q2 revenues of $3B lagged estimates slightly and declined marginally y/y.\",\"2\":\"CAR shares have dropped 21.9% since Q2 results despite a 97.5% YTD gain before the release.\"}
The company’s adjusted earnings per share of 10 cents missed the Zacks Consensus Estimate by 95.1% and decreased 75.6% from the year-ago quarter. Revenues of $3 billion lagged the consensus estimate by a slight margin. The metric declined marginally year over year.
The stock witnessed a 21.9% decline since the earnings release on July 29 in response to dismal earnings and revenue results.
CAR shares have surged 97.5% in the year-to-date period compared with the industry’s decline of 3.3% and the Zacks S&P 500 composite’s growth of 7.3%.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Revenues from the Americas amounted to $2.3 billion, indicating a 1% decline from the year-ago quarter’s reported figure. The metric missed our estimate of $2.4 billion.
International revenues were $707 million, declining 3% on a year-over-year basis. The figure missed our estimation of $698.2 million.
CAR’s Profitability
Adjusted EBITDA was $277 million, up 29% from the year-ago quarter’s actual. The Americas segment reported adjusted EBITDA of $220 million, increasing 18% year over year. Internationally, adjusted EBITDA was $82 million, surging 71% from the year-ago quarter.
Balance Sheet & Cash Flow of CAR
Avis Budget exited the second quarter of 2025 with cash and cash equivalents of $541 million compared with $516 million at the end of the first quarter of 2025. Corporate debt amounted to $6.1 billion compared with $5.9 billion in the preceding quarter.
CAR generated $837 million in net cash from operating activities. The adjusted free cash flow utilized was $17 million. Capital expenditure was $53 million.
Avis Budget carries a Zacks Rank #4 (Sell) at present.
VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.
IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.
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Avis Budget Stock Declines 22% Since Reporting Q2 Earnings Miss
Key Takeaways
Avis Budget Group, Inc. (CAR - Free Report) reported narrower-than-expected second-quarter 2025 results.
The company’s adjusted earnings per share of 10 cents missed the Zacks Consensus Estimate by 95.1% and decreased 75.6% from the year-ago quarter. Revenues of $3 billion lagged the consensus estimate by a slight margin. The metric declined marginally year over year.
The stock witnessed a 21.9% decline since the earnings release on July 29 in response to dismal earnings and revenue results.
CAR shares have surged 97.5% in the year-to-date period compared with the industry’s decline of 3.3% and the Zacks S&P 500 composite’s growth of 7.3%.
Avis Budget Group, Inc. Price, Consensus and EPS Surprise
Avis Budget Group, Inc. price-consensus-eps-surprise-chart | Avis Budget Group, Inc. Quote
Avis Budget’s Segmental Revenues
Revenues from the Americas amounted to $2.3 billion, indicating a 1% decline from the year-ago quarter’s reported figure. The metric missed our estimate of $2.4 billion.
International revenues were $707 million, declining 3% on a year-over-year basis. The figure missed our estimation of $698.2 million.
CAR’s Profitability
Adjusted EBITDA was $277 million, up 29% from the year-ago quarter’s actual. The Americas segment reported adjusted EBITDA of $220 million, increasing 18% year over year. Internationally, adjusted EBITDA was $82 million, surging 71% from the year-ago quarter.
Balance Sheet & Cash Flow of CAR
Avis Budget exited the second quarter of 2025 with cash and cash equivalents of $541 million compared with $516 million at the end of the first quarter of 2025. Corporate debt amounted to $6.1 billion compared with $5.9 billion in the preceding quarter.
CAR generated $837 million in net cash from operating activities. The adjusted free cash flow utilized was $17 million. Capital expenditure was $53 million.
Avis Budget carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Verisk (VRSK - Free Report) reported impressive second-quarter fiscal 2025 results.
VRSK’s adjusted earnings were $1.88 per share, surpassing the Zacks Consensus Estimate by 6.2% and increasing 8.1% from the year-ago quarter. Total revenues of $772.6 million beat the consensus estimate marginally and increased 7.8% on a year-over-year basis.
IQVIA Holdings Analytics Inc. (IQV - Free Report) posted impressive second-quarter 2025 results.
IQV’s adjusted earnings were $2.81 per share, beating the Zacks Consensus Estimate by 1.8% and rising 6.4% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by 1.5% and grew 5.3% from the year-ago quarter.