- Localiza reported an EBITDA of R$3.29 billion for the second quarter, which represents a 40% increase year-over-year. However, it was slightly below the estimated R$3.33 billion.
- The company posted a net loss of R$168.6 million, showing a substantial improvement from the previous year with a 70% reduction in losses.
- Revenue reached R$9.90 billion, reflecting a 9.4% increase compared to the same period last year but falling short of the R$9.97 billion estimate.
- The EBITDA margin improved significantly to 42.7% from a negative margin of -2.6% the previous year.
- Earnings before interest and tax (EBIT) amounted to R$2.02 billion, a strong recovery from a loss of R$112 million last year, though it was slightly below the estimate of R$2.08 billion.
- The company’s net debt stood at R$31.35 billion.
- Analyst recommendations include 16 buys, 2 holds, and no sells for Localiza.
A look at Localiza Rent A Car Sa Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Localiza Rent A Car Sa, a leading car rental company, shows a positive long-term outlook based on the Smartkarma Smart Scores. With above-average scores in Dividend and Momentum, Localiza is poised for growth and stability in the market. The company’s strong performance in these areas reflects its ability to generate stable returns for investors and maintain an upward trend in the market.
Although Localiza’s Value and Growth scores are slightly lower, its overall resilience score indicates a moderate ability to weather economic uncertainties. As a key player in the automobile rental industry in Brazil and Latin America, Localiza’s diverse business model that includes car sales and fleet management services positions it well for long-term success and continued profitability.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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