Avis Budget Group, Inc. (CAR – Free Report) reported solid fourth-quarter 2017 results with adjusted earnings of $38 million or 45 cents per share compared with $13 million or 15 cents per share in the prior-year quarter. Adjusted earnings comfortably beat the Zacks Consensus Estimate of 19 cents.

GAAP earnings for the quarter were $220 million or $2.65 per share against a loss of $31 million or 35 cents per share in the year-ago quarter. The improvement was primarily driven by global sales growth, positive pricing in the Americas, cost-cutting measures and one-time U.S. tax reform benefit. GAAP earnings for full-year 2017 amounted to $361 million or $4.25 per share compared with $163 million or $1.75 per share for the prior-year.

Revenues for the reported quarter were $2,019 million compared with $1,879 million in the year-ago quarter. The year-over-year increase was largely attributable to pricing and utilization improvement in the Americas, strong volume growth and stringent cost-cutting initiatives. The company’s revenues barely exceeded the Zacks Consensus Estimate of $2,018 million. Total revenues for full-year 2017 increased 2% year-over-year to $8,848 million from $8,659 million for the prior-year. 

For the quarter, adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $140 million compared with $121 million in the year-ago quarter.

Avis Budget Group, Inc. Price, Consensus and EPS Surprise

Avis Budget Group, Inc. Price, Consensus and EPS Surprise | Avis Budget Group, Inc. Quote

Segmental Performance

Americas reported revenues of $1,382 million compared with $1,343 million in the prior-year quarter, primarily due to 3% increase in volume and a more than 2% rise in local currency time and mileage revenues per day, partially offset by 2% lower ancillary revenues per day.

The International segment’s revenues for the reported quarter increased 19% year over year to $637 million due to 15% increase in rental days including 8% benefit from the acquisition of FranceCars.