Zipcar (ZIP) Slammed Following Q2 Results; Slowing Member Growth, Lowered Outlook Hit Shares
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Zipcar (Nasdaq: ZIP) is mimicking its name Friday morning, but not in the way most investors would like: it's zipping lower.
For its second-quarter 2012, Zipcar sales rose 15 percent from $61.56 million last year up to $70.81 million.
The jump in revenue led to Zipcar markedly narrowing its net loss from $5.57 million down to 422 thousand, or one cent per share.
Overall, the Street consensus called for revs of $73.1 million and break even loss per share.
Metrics rose for ending members and vehicles, by 21 percent and 17.1 percent, respectively. Member growth slowed from a 25 percent increase in the prior year period.
Revenue per member per period fell $5 to $98 for the quarter.
Looking ahead, Zipcar cut fiscal 2012 sales expectations from a range of $290 million to $296 million down to a range of $272 million to $278 million. The Street was expecting $291 million in sales for 2012.
Third quarter revs are expected to be $74 million to $77 million, below $81.5 million expected by analysts.
Zipcar was downgraded by multiple firms Friday:
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For its second-quarter 2012, Zipcar sales rose 15 percent from $61.56 million last year up to $70.81 million.
The jump in revenue led to Zipcar markedly narrowing its net loss from $5.57 million down to 422 thousand, or one cent per share.
Overall, the Street consensus called for revs of $73.1 million and break even loss per share.
Metrics rose for ending members and vehicles, by 21 percent and 17.1 percent, respectively. Member growth slowed from a 25 percent increase in the prior year period.
Revenue per member per period fell $5 to $98 for the quarter.
Looking ahead, Zipcar cut fiscal 2012 sales expectations from a range of $290 million to $296 million down to a range of $272 million to $278 million. The Street was expecting $291 million in sales for 2012.
Third quarter revs are expected to be $74 million to $77 million, below $81.5 million expected by analysts.
Zipcar was downgraded by multiple firms Friday:
- Morgan Stanley from Overweight to Underweight;
- Oppenheimer from Outperform to Perform, slashing its price target from $24 down to $8; and
- Needham & Company from Buy to Hold. For more color on Needham's call, click here.
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Morgan Stanley, Needham & Company
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