KAR Auction Services Earnings: Here’s Why the Stock is Falling Now

KAR Auction Services, Inc. (NYSE:KAR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 4.96%.

KAR Auction Services, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 30.77% to $0.34 in the quarter versus EPS of $0.26 in the year-earlier quarter.

Revenue: Rose 10.9% to $541.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: KAR Auction Services, Inc. reported adjusted EPS income of $0.34 per share. By that measure, the company beat the mean analyst estimate of $0.31. It beat the average revenue estimate of $518.72 million.

Key Stats (on next page)…

Revenue decreased 2.96% from $557.6 million in the previous quarter. EPS increased 9.68% from $0.31 in the previous quarter.

Looking Forward: 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 $0.28 to a profit $0.27. For the current year, the average estimate is a profit of $1.19, which is the same with that ninety days ago.

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