Avis Budget misses by $0.24, misses on revs; guides FY17 EPS in-line, reaffirms revs above consensus
- Reports Q2 (Jun) earnings of $0.30 per share, excluding non-recurring items, $0.24 worse than the Capital IQ Consensus of $0.54; revenues fell 0.2% year/year to $2.24 bln vs the $2.27 bln Capital IQ Consensus.
- Co issues guidance for FY17, sees EPS of $2.40-2.85 (Prior $2.85-3.30), excluding non-recurring items, vs. $2.82 Capital IQ Consensus Estimate; sees FY17 revs of $8.80-8.95 bln vs. $8.77 bln Capital IQ Consensus Estimate.
- Adjusted EBITDA in the range of $725-775 mln.
- Adjusted free cash flow approx $350 mln.
- "Our second quarter results in the Americas reflected both a 4% reduction in pricing resulting from industry over-fleeting and higher per-unit fleet costs due to lower used-vehicle values. Consequently, we have identified $25 million of additional savings opportunities globally, bringing our total expected savings this year to $75 million, and have lowered our full-year earnings guidance to reflect the difficult first half".