NASDAQ$CAR

Avis Budget Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Avis Budget Group reported positive earnings and removed an additional $1 billion of expenses.

Avis Budget Group announced third quarter 2020 financial results, with a net income of $45 million and adjusted net income of $79 million. The company achieved positive Adjusted EBITDA of $220 million through cost removal actions and fleet adjustments, removing approximately $1 billion of costs during the quarter.

  • Continued to reduce cost base, removing another $1 billion of costs.
  • Profitably disposed of 75,000 vehicles in the U.S., including 49,000 vehicles sold through alternative channels.
  • Completed a senior notes offering of $350 million to pay off existing notes and provide additional liquidity.
  • Expanded partnerships to enhance the cleanliness and disinfection of rental facilities and vehicles.

Headline financials

Total Revenue

$1.53B

Previous: $2.75B-44.3%
EPS (adj)

$1.13

Previous: $2.96-61.8%
Total vehicle utilization

60.6%

Previous: 73.3%-17.3%
Americas utilization

57.9%

Previous: 72.6%-20.2%
International utilization

67.0%

Previous: 74.5%-10.1%
Total per-unit fleet costs

$165.00

Previous: $251.00-34.3%
Americas per-unit fleet costs

$152.00

Previous: $267.00-43.1%
International per-unit fleet costs

$195.00

Previous: $222.00-12.2%
Free Cash Flow

$45M

Previous: $189M-76.2%
Net Income

$45M

Previous: $189M-76.2%
Operating Income

$1.27B

Previous: $561M+126.4%
Gross Profit

$709M

Previous: $1.46B-51.5%
Cash & Equivalents

$1.56B

Previous: $615M+154.3%
Total Assets

$19.6B

Previous: $23.1B-15.2%
Stock-Based Comp

$4M

Previous: $6M-33.3%

Revenue & EPS history

Avis · Revenue · Quarterly

$1.53B

Q3 2020-44.3%vs Q3 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Avis · $1.53B total across 2 segments · Q3 2020

  • Americas
    $1.11B-40.4%
  • International
    $420M-52.5%

Forward guidance

Although we believe the travel environment will remain challenged, we still expect to be Adjusted EBITDA and Adjusted Free Cash Flow positive excluding the return of vehicle equity for the fourth quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.8%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+1.0%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+106.1%

Q3 2021

Best reaction

-25.8%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.1%-11.6%-3.1%
Q4 2025-21.7%-23.8%-19.0%
Q3 2025-6.1%-12.3%-13.7%
Q1 2025+0.6%+5.8%+22.4%
Q4 2024-6.8%+1.2%-30.9%
Q3 2024+7.1%+3.0%+26.9%
Q2 2024+2.2%+3.0%-11.7%
Q1 2024+19.2%+27.3%+19.2%
Q4 2023-23.1%-33.5%-33.0%
Q3 2023+14.9%+23.1%+20.2%
Q2 2023+1.9%+1.3%-1.1%
Q1 2023-2.8%-5.2%-5.0%
Q4 2022+13.6%+12.1%-12.9%
Q3 2022-9.4%-4.7%-8.1%
Q2 2022-5.2%+1.1%-8.0%
Q1 2022+6.6%-4.4%-30.0%
Q4 2021-5.5%-11.5%+55.3%
Q3 2021+106.1%+71.6%+46.1%
Q2 2021-12.8%-2.7%+10.5%
Q1 2021-7.0%-8.2%-3.3%
Q4 2020-4.2%+9.0%+50.6%
Q3 2020-4.2%-13.1%+5.3%
Q2 2020-4.1%-9.5%+19.3%
Q1 2020-0.1%+6.0%+95.7%
Q4 2019+21.8%+6.8%-73.4%
Q3 2019-8.0%-1.1%-1.4%
Q2 2019-3.0%-9.6%-29.8%
Q1 2019+1.6%+3.3%-20.2%
Q4 2018+16.5%+19.3%+12.3%
Q3 2018-2.1%+6.8%-7.7%
Q2 2018-8.2%-5.8%-12.4%
Q1 2018-9.6%-7.2%-19.8%
Q4 2017+10.7%+15.9%+15.2%
Q3 2017-14.2%-18.3%-3.6%
Q2 2017-6.6%+8.0%+11.7%
Q1 2017-5.5%-13.0%-27.3%
Q4 2016-6.9%-12.1%-14.9%
Q3 2016+12.3%+20.0%+18.4%
Q2 2016+2.5%+6.6%+0.2%
Q1 2016+1.5%
Q4 2015-25.8%
Q3 2015-7.2%
Q2 2015+3.8%
Q1 2015-2.9%
Q4 2014+2.9%
Q3 2014-1.5%
Q2 2014+4.6%
Q1 2014-3.9%
Q4 2013+12.1%
Q3 2013+8.0%
Q2 2013-6.7%
Q1 2013-0.2%
Q4 2012+4.6%
Q3 2012-0.4%
Q2 2012+7.7%
Q1 2012+3.9%
Q2 2011+1.0%
Q4 2011+1.0%
Q3 2011-5.8%
Q4 2010-5.3%
Q1 2010+1.2%
Q1 2011-1.5%
Q3 2010+5.2%
Q2 2010-0.5%
Q4 2009-0.5%

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