This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Avis Budget Group (CAR) Is Soaring on Thursday

Stocks in this article: CAR

NEW YORK (TheStreet) -- Avis Budget Group (CAR) is soaring after reporting a fourth quarter which beat estimates on the top- and bottom-line. Management also forecast fiscal 2014 earnings and revenue in-line with consensus.

By noon, shares had added 7.9% to $43.14.

The car rental company recorded per-share earnings of 15 cents on revenue 8.8% higher year over year to $1.85 billion. Analysts surveyed by Thomson Reuters had forecast net income of 12 cents a share on $1.83 billion in revenue.

Higher quarterly revenue was due to a 6% increase in rental days and the acquisition of Zipcar in March 2013 which contributed an additional $74 million in sales. Payless Car Rental, purchased in July 2013, added $21 million in sales to quarterly revenue.

Including one-time charges, the company reported a net loss of $28 million due to restructuring costs in Europe and the paying down of debt. The loss was narrower than a net loss of $46 million in the year-ago quarter.

Over fiscal 2013, net income of $2.20 a share exceeded consensus by 3 cents a share and revenue 8% higher to $7.94 billion was $10 million more than expected.

"Our initiatives to accelerate growth in higher-profit customer segments and channels drove both strong volume and positive pricing. We also made a number of investments that not only expanded our global footprint, but also positioned us to benefit from faster-growing markets, highlighted by our acquisition of Zipcar," said CEO Ronald L. Nelson in a statement.

For fiscal 2014, the Parsippany, NJ-based business expects revenue between $8.3 billion and $8.5 billion, a 5% to 7% year-over-year increase. Diluted earnings are forecast to rise 11% to 30% to between $2.45 and $2.85 a share.

Analysts forecast per-share earnings of $2.72 and total sales of $8.35 billion.

Also See: Avis Budget Reports Fourth Quarter

TheStreet Ratings team rates AVIS BUDGET GROUP INC as a Hold with a ratings score of C+. The team has this to say about their recommendation:

"We rate AVIS BUDGET GROUP INC (CAR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs