Avis Budget Group Inc. (NASDAQ: CAR) is having an incrediblys trong start to the trading session this morning, and for good reason. The company announced its earnings, showing the ninth consecutive year of revenue growth. Today, we’ll talk about:
- The financial report;
- what we’re seeing out of CAR stock as a result; and
- what we’ll be watching for ahead.
CAR Stock Climbs On Ninth Consecutive Year Of Revenue Growth
As mentioned above, Avis Budget Group is having a strong day in the market today after announcing its financial results. The results, showing the ninth consecutive year of revenue growth, excited investors, pushing the stock up. Here’s what we saw from the report:
- Earnings – During the fourth quarter, CAR said that it generated a profit of $1 million. That works out to $0.16 per share. Once adusted for non-recurring costs and amortization costs, earnings came to $0.53 per share. Analysts expected that earnings would come in at $0.31 per share.
- Revenue – Revenue proved to be a big hit. During the quarter came in at $2.05 billion. On a full year basis, it came to $9.12 billion. The company guided in the range between $9.2 billion and $9.5 billion. Not only did the figure beat expectations, it showed the 9th year of growth in revenue.
In a statement, Larry De Shon, President and CEO at CAR, had the following to offer:
Our Company had a very successful 2018, expanding margin and reporting our ninth consecutive year of revenue growth. We ended the year strong, reporting record fourth quarter Adjusted EBITDA and Adjusted earnings per share, driven by a more than 2% increase in Americas pricing and substantially lower overall per-unit fleet costs.
Looking forward, we are investing in our future and leveraging innovation to build on our position as a leading global provider of mobility solutions, while also focusing on improving our profitability today.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Avis Budget Group, the news proved to be overwhelmingly positive.
Not only did the company beat expectations on earnings, it did the same with regard to revenue. Moreover, consecutive growth is always a good sign for investors.
With the report in mind, it’s not surprising to see that investors are excitedly pushing the stock for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:01), CAR is trading at $33.85 per share after a gain of $4.44 per share or 15.10% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CAR. In particular, we’re interested in following the story surrounding the company’s continued work to keep revenue growing. Nonetheless, we’ll keep an eye on the news and bring the news to you as it breaks!
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