Avis Budget Group (CAR) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Avis Budget Group, driven by higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Avis Budget is expected to report quarterly earnings of $8.17 per share, reflecting a year-over-year increase of +22.9% [3]. - Revenue projections stand at $3.48 billion, indicating a slight increase of 0.1% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 68.95% higher in the last 30 days, indicating a significant reassessment by analysts [4]. - Despite the positive revision trend, the Most Accurate Estimate is lower than the consensus, resulting in an Earnings ESP of -3.88%, suggesting a bearish outlook [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [10]. - Avis Budget currently holds a Zacks Rank of 3, complicating predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Avis Budget was expected to post earnings of $2.02 per share but only achieved $0.10, resulting in a surprise of -95.05% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Conclusion - Avis Budget does not appear to be a strong candidate for an earnings beat, and investors should consider other factors before making investment decisions [17].