Today is Tuesday, May 3, 2022.
New to this newsletter? Sign up here
Avis Proves the Haters Wrong
Shares of Avis Budget Group (Nasdaq: CAR) soared 6.58% in after-hours trading on Monday after the car rental company posted positive earnings.
Financial: Avis reported earnings per share of $9.71 and revenue of $2.4 billion; both were better than expected.
Success: The revenue was 77% higher than in the first quarter of 2021 and up by 27% from the same period in 2019. Adjusted EBITDA was $810 million, a company record, and adjusted EBITDA in international markets was $23 million, also a record.
Background: Avis, like most travel companies, faced extreme financial hardship during the pandemic. The Omicron variant’s arrival could have spelled trouble for Avis, but the company pulled through on the back of strong travel demand.
Buyback: The board increased its stock repurchase program to $2.3 billion, which should help the stock price.
Final Thoughts: Avis had a surprisingly successful quarter, particularly when most analysts expected the company to struggle. The future looks bright, but will this success continue?
Notable Earnings Today: Advanced Micro Devices (Nasdaq: AMD), Pfizer (NYSE: PFE), BP (NYSE: BP), Airbnb (Nasdaq: ABNB), Marathon Petroleum (NYSE: MPC), Starbucks (Nasdaq: SBUX), Hilton Worldwide Holdings (NYSE: HLT), Skyworks Solutions (Nasdaq: SWKS), Teva Pharmaceutical Industries (NYSE: TEVA), ONEOK (NYSE: OKE), Biogen (Nasdaq: BIIB), Lyft (Nasdaq: LYFT), Estee Lauder (NYSE: EL), A10 Networks (NYSE: ATEN), MPLX (NYSE: MPLX), Matson (NYSE: MATX), AGCO (NYSE: AGCO), Match Group (Nasdaq: MTCH), Westlake (NYSE: WLK), Caesars Entertainment (Nasdaq: CZR), Akamai Technologies (Nasdaq: AKAM), Amcor (NYSE: AMCR), American International Group (NYSE: AIG), Andersons (Nasdaq: ANDE), Arconic (NYSE: ARNC), B2Gold (NYSEAMERICAN: BTG), Big 5 Sporting Goods (Nasdaq: BGFV), Camping World Holdings (NYSE: CWH), CenterPoint Energy (NYSE: CNP), Chesapeake Utilities (NYSE: CPK), Cirrus Logic (CRUS), Comstock Mining (NYSEAMERICAN: LODE), Comstock Resources (NYSE: CRK), CONSOL Energy (NYSE: CEIX), Cummins (NYSE: CMI), Denny's (Nasdaq: DENN), DuPont de Nemours (NYSE: DD), Eaton (NYSE: ETN), Equitrans Midstream (NYSE: ETRN), Evoqua Water Technologies (NYSE: AQUA), Expeditors International of Washington (Nasdaq: EXPD), Extra Space Storage (NYSE: EXR), Franklin Resources (NYSE: BEN), Gartner (NYSE: IT), Green Brick Partners (NYSE: GRBK), Gulfport Energy (NYSE: GPOR), Hanover Insurance Group (NYSE: THG), Harmony Biosciences Holdings (Nasdaq: HRMY), Henry Schein (Nasdaq: HSIC), Herbalife Nutrition (NYSE: HLF), Incyte (Nasdaq: INCY), Jacobs Engineering Group (NYSE: J), KKR & Co. (NYSE: KKR), Lear (NYSE: LEA), Logitech International (Nasdaq: LOGI), Louisiana-Pacific (NYSE: LPX), Marathon Petroleum (NYSE: MPC), Martin Marietta Materials (NYSE: MLM), Meritor (NYSE: MTOR), MicroStrategy (Nasdaq: MSTR), Molson Coors Beverage (NYSE: TAP), MPLX (NYSE: MPLX), Prudential Financial (NYSE: PRU), Public Storage (NYSE: PSA), Radware (Nasdaq: RDWR), Restaurant Brands International (NYSE: QSR), Rockwell Automation (NYSE: ROK), Sealed Air (NYSE: SEE), Spirit Realty Capital (NYSE: SRC), Super Micro Computer (Nasdaq: SMCI), Waters (NYSE: WAT), Yum China Holdings (NYSE: YUMC), Zebra Technologies (Nasdaq: ZBRA).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Pit Liquor (Wefunder), Whooshh Innovations (StartEngine).
Notable Economic Events Today: Factory Orders (10:00 a.m.), JOLTs Job Openings (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Clorox Dirty From Inflation
Photo by Clay Banks / Unsplash
Shares of Clorox (NYSE: CLX) dropped 2.15% in after-hours trading Monday after the consumer products company posted mixed earnings.
Financials: Clorox reported earnings of $1.31 per share and revenue of $1.8 billion; both were better than expected.
Outlook: However, the company posted weaker guidance as “cost inflation continues to increase.”
Final Thoughts: Shares of Clorox are down 18% this year. It’s been a rough time to be a Clorox investor and higher inflation is making it worse.
Using the Cryptocurrency Fear and Greed Index
The cryptocurrency Fear and Greed Index, which is a daily metric on the current emotional state of digital currency, is a useful data point for traders.
Significance: With the Fear and Greed Index, traders gain an objective data point. The index helps traders make logical decisions about crypto without getting stuck in overreactions from the market.
Final Thoughts: Basically, this cuts out the emotional side of trading crypto, enabling investors to make better choices.
Trends to Watch
Setback: Amazon Workers Reject Union in New York After Labor Victory at Separate Facility (The Wall Street Journal)
Explanation: Bitcoin Is ‘A Liquid Alternative To Cash’ Says Elon Musk’s Tesla (Bitcoin Magazine)
Reduction: Elon Musk could put less money into Twitter acquisition deal (NBC News)
What Investors Want: Retail Investors Tiptoe Back Into Muni Bonds as Yields Beckon (Bloomberg)
Coming to an End: We’re in a historically overvalued housing market, and these cities could see home prices drop 10%, Moody’s says (Fortune)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.