DealerTrack Holdings Earnings: What Investors Should Watch

Dealertrack Holdings (NASDAQ:TRAK) will report earnings after markets close on Wednesday, May 8th. DealerTrack Holdings Inc. provides on-demand software and data solutions for the automotive retail industry in the United States. The Company utilizes the Internet to link automotive dealers with banks, finance companies, credit unions and other financing sources, and other service and information providers, such as the major credit reporting agencies.

Here is your Cheat Sheet to Dealertrack Holdings Earnings:

Earnings Expectations: Analysts expect earnings of $0.25 per share on revenues of $106.57 million. Currently, the company’s P/E ratio stands at 60.96.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.36 to a profit $0.32. For the current year, the average estimate is a profit of $1.23, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Dealertrack Holdings has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 242.71 225.63 243.83 353.29 388.87
Diluted EPS ($) 0.04 -0.11 -0.69 1.53 0.46

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 91.26 91.62 96.40 99.08 101.78
Diluted EPS ($) 0.7645 0.39 0.13 -0.07 0.0113

Past Performance:
Dealertrack Holdings has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]