KAR Auction Services Earnings: Here’s Why Investors are Not Happy Now

KAR Auction Services, Inc. (NYSE:KAR) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.30%.

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KAR Auction Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.31 in the quarter versus EPS of $0.31 in the year-earlier quarter.

Revenue: Rose 10% to $557.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KAR Auction Services, Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company missed the mean analyst estimate of $0.32. It beat the average revenue estimate of $541.43 million.

Quoting Management: There was no comment from the management.

Key Stats (on next page)…

Revenue increased 12.94% from $493.7 million in the previous quarter. EPS increased 14.81% from $0.27 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.31 and has not changed. For the current year, the average estimate has moved up from a profit of $1.18 to a profit of $1.19 over the last ninety days.

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