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Dollar Thrifty Automotive Group Inc. (NYSE:DTG) reported net income above Wall Street’s expectations for the second quarter. Dollar Thrifty Automotive Group operates in the United States and Canada and, through its Dollar and Thrifty brands, is mainly engaged in the business of the daily rental of vehicles to business and leisure customers through company-owned stores.
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Dollar Thrifty Automotive Group Inc. Earnings Cheat Sheet
Results: Net income for Dollar Thrifty Automotive Group Inc. rose to $49.4 million ($1.69 per share) vs. $42.5 million ($1.36 per share) in the same quarter a year earlier. This marks a rise of 16.3% from the year-earlier quarter.
Revenue: Remained constant at $395.4 million.
Actual vs. Wall St. Expectations: Dollar Thrifty Automotive Group Inc. beat the mean analyst estimate of $1.31 per share. It beat the average revenue estimate of $357.1 million.
Quoting Management: “We are pleased to report record second quarter results, particularly in light of the disappointing current economic environment. Rental day growth, improved vehicle utilization, a strong used vehicle market and continued focus on cost control all contributed to the year-over-year improvement and mitigated the softness in pricing,” said Scott L. Thompson, Chairman, President and Chief Executive Officer.
The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose more than twofold and in the fourth quarter of the last fiscal year, the figure rose more than twofold.
Gross margin shrank 1.4 percentage points to 50.3%. The contraction appeared to be driven by increased costs, which rose 2.9% from the year earlier quarter while revenue rose 0.1%.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of $1.35 versus a mean estimate of net income of $1.37 per share.
Over the last five quarters, revenue has increased 1% on average year-over-year. The biggest increase came in the first quarter, when revenue rose 2.3% from the year-earlier quarter.
Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to $1.89 per share from $1.77. For the fiscal year, the average estimate has moved up from $5.18 a share to $5.47 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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