KAR Auction Services (KAR) Posts Earnings Results, Misses Estimates By $0.01 EPS

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KAR Auction Services (NYSE:KAR) announced its quarterly earnings results on Tuesday. The specialty retailer reported $0.70 EPS for the quarter, missing the Zacks’ consensus estimate of $0.71 by ($0.01), Briefing.com reports. KAR Auction Services had a net margin of 11.50% and a return on equity of 26.15%. The business had revenue of $933.50 million during the quarter, compared to the consensus estimate of $910.43 million. During the same period in the previous year, the business posted $0.57 EPS. The firm’s revenue was up 10.7% on a year-over-year basis. KAR Auction Services updated its FY 2018 guidance to $2.89-3.04 EPS and its FY18 guidance to $2.89-3.04 EPS.

NYSE KAR traded down $1.78 during trading on Wednesday, hitting $55.95. The stock had a trading volume of 1,709,800 shares, compared to its average volume of 894,323. The company has a debt-to-equity ratio of 1.76, a current ratio of 1.31 and a quick ratio of 1.31. The company has a market cap of $7.81 billion, a P/E ratio of 22.38, a PEG ratio of 1.74 and a beta of 1.08. KAR Auction Services has a one year low of $47.43 and a one year high of $64.55.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 4th. Shareholders of record on Thursday, December 20th will be paid a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 2.50%. The ex-dividend date is Wednesday, December 19th. KAR Auction Services’s payout ratio is currently 56.00%.

In other KAR Auction Services news, COO Donald S. Gottwald sold 10,000 shares of the firm’s stock in a transaction dated Tuesday, August 14th. The shares were sold at an average price of $61.53, for a total value of $615,300.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO James P. Hallett sold 150,000 shares of the firm’s stock in a transaction dated Friday, August 10th. The stock was sold at an average price of $62.11, for a total transaction of $9,316,500.00. The disclosure for this sale can be found here. In the last three months, insiders sold 277,560 shares of company stock valued at $17,295,354. 1.29% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the business. Townsend & Associates Inc bought a new stake in KAR Auction Services in the second quarter worth about $120,000. Bruderman Asset Management LLC bought a new stake in KAR Auction Services in the second quarter worth about $121,000. Harvest Fund Management Co. Ltd bought a new stake in KAR Auction Services in the third quarter worth about $153,000. Tower Research Capital LLC TRC lifted its stake in KAR Auction Services by 1,334.5% in the second quarter. Tower Research Capital LLC TRC now owns 3,199 shares of the specialty retailer’s stock worth $175,000 after purchasing an additional 2,976 shares during the last quarter. Finally, Park Avenue Securities LLC bought a new stake in KAR Auction Services in the third quarter worth about $202,000. 99.24% of the stock is owned by institutional investors and hedge funds.

A number of research analysts recently commented on KAR shares. ValuEngine downgraded shares of KAR Auction Services from a “buy” rating to a “hold” rating in a report on Thursday, October 4th. Zacks Investment Research downgraded shares of KAR Auction Services from a “buy” rating to a “hold” rating in a report on Tuesday, August 14th. Stephens reaffirmed a “hold” rating and issued a $60.00 price target on shares of KAR Auction Services in a report on Thursday, August 9th. Barrington Research set a $70.00 price target on shares of KAR Auction Services and gave the company a “buy” rating in a report on Monday. Finally, Gabelli downgraded shares of KAR Auction Services from a “buy” rating to a “hold” rating in a report on Thursday, August 9th. They noted that the move was a valuation call. Three research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. KAR Auction Services has an average rating of “Buy” and an average target price of $65.29.

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About KAR Auction Services

KAR Auction Services, Inc, together with its subsidiaries, provides used car auction and salvage auction services in the United States, Canada, Mexico, and the United Kingdom. The company operates through three segments: ADESA Auctions, IAA, and AFC. The ADESA Auctions segment offers whole car auctions and related services to the vehicle remarketing industry through online auctions and auction facilities.

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Earnings History for KAR Auction Services (NYSE:KAR)

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