Why Avis Budget Group (CAR) Could Beat Earnings Estimates Again – Tale of the Tape
Looking for a stock that might be in a good position to beat earnings at its next report? Consider Avis Budget Group, Inc. ( CAR ), a firm in the services sector, which could be a great candidate for another beat.
This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, PES has beaten estimates by at least 25.0% in both cases, suggesting it has a nice short-term history of crushing expectations.
Earnings in Focus
Two quarters ago, PES expected to post 12 cents per share, while its earnings came in at 15 cents per share, a significant beat. Meanwhile, for the most recent quarter, the company looked to deliver earnings per share of 8 cents, when it actually saw 16 cents per share instead, representing a 100% positive surprise.
Thanks in part to this history, estimates have been moved higher for Avis Budget Group over the last two months. In fact, the Earnings ESP for PES is positive, which is a great sign of a coming beat.
After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company’s earnings prospects. This is the case for CAR, as the firm currently has a Zacks Earnings ESP of 3.23 %, so another beat could be around the corner.
This is particularly true when you consider that CAR has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that CAR could see another beat at its next report, especially if recent trends are any guide.
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