Dollar Thrifty Automotive Group Inc. (DTG) recently hit a new 52-week high on the company’s strong Q4 results from mid February and a bullish next-year estimate projecting 49% earnings growth.
Company Description
Dollar Thrifty Automotive Group, Inc., through its subsidiaries, rents and leases vehicles through company owned and franchised stores under the name’s DOllar and Thrifty in the United States and Canada. The company owns 296 stores and franchises 317 and has a market cap of $1 billion.
Fourth-Quarter Results
Shares of DTG jumped higher on Feb 17 after the company reported better than expected Q4 results. Sales were down about $10 million from last year to $345 million, but earnings came in better than expected at 28 cents, blowing past the Zacks Consensus Estimate calling for a loss of 16 cents.
Dollar Thrifty made up for the decline in revenue by increasing its revenues per day by 11%. The company’s per vehicle depreciation was down 33% from last year to $274. Operating expenses were down 620 basis points to 65.1% of revenue. Dollar Thrifty also has $500 million in cash and equivalents to strengthen its balance sheet.
Estimates Jump
Estimates jumped higher on the strong quarter, with the current year adding 25 cents to $1.62. The next-year estimate is up 32 cents $2.42, a solid 49% growth projection.
Based upon the current year estimate, shares of DTG trade with a forward P/E of 21X, a premium to the overall market.
The Chart
Shares of DTG are just a few cents away from the 52-week high at $35.24 after rebounding from a key trend line in mid February. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
