Diamonds and Dogs

2/22/18

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.