Diamonds and Dogs
Avis Budget (CAR) up 13% following earnings. The rental-car company swung to a profit in the fourth quarter as sales beat forecasts. Avis said it earned $220 million, or $2.65 a share, in the quarter, versus a loss of $31 million, or 35 cents a share, in the year-ago period. Avis's earnings and strategy are being closely watched after top shareholder SRS Investment Management LLC launched a proxy fight to add more of its hand-picked directors to the company's board.
Wayfair (W) plunges on a bigger lose. The online furniture retailer is down 21% on a wider than expected loss of $32 million. Wayfair provided first-quarter revenue guidance above consensus estimates, earnings once again below consensus. The first-quarter guidance reflects ramping investments in customer growth, infrastructure and headcount, which translates into bigger losses than consensus expectations. The Baird analyst, Colin Sebastian reiterated a neutral rating and a $65 price target. Wayfair Board did authorize the repurchase of up to $200 million stock.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.