Zacks: Brokerages Anticipate KAR Auction Services Inc (NYSE:KAR) Will Announce Earnings of $0.39 Per Share

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Wall Street analysts expect that KAR Auction Services Inc (NYSE:KAR) will report $0.39 earnings per share for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for KAR Auction Services’ earnings. The highest EPS estimate is $0.40 and the lowest is $0.35. KAR Auction Services reported earnings of $0.70 per share during the same quarter last year, which indicates a negative year-over-year growth rate of 44.3%. The business is scheduled to report its next quarterly earnings results on Tuesday, November 5th.

On average, analysts expect that KAR Auction Services will report full-year earnings of $1.24 per share for the current year, with EPS estimates ranging from $1.16 to $1.30. For the next fiscal year, analysts anticipate that the company will post earnings of $1.52 per share, with EPS estimates ranging from $1.34 to $1.65. Zacks’ earnings per share averages are an average based on a survey of research analysts that that provide coverage for KAR Auction Services.

KAR Auction Services (NYSE:KAR) last issued its earnings results on Tuesday, August 6th. The specialty retailer reported $0.30 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.40 by ($0.10). The firm had revenue of $719.00 million for the quarter, compared to analyst estimates of $692.00 million. KAR Auction Services had a return on equity of 19.93% and a net margin of 7.67%. KAR Auction Services’s quarterly revenue was up 15.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.82 earnings per share.

A number of brokerages recently weighed in on KAR. ValuEngine downgraded shares of KAR Auction Services from a “hold” rating to a “sell” rating in a report on Thursday, August 8th. SunTrust Banks decreased their price objective on shares of KAR Auction Services from $65.00 to $30.00 and set a “buy” rating on the stock in a report on Monday, July 1st. Guggenheim downgraded shares of KAR Auction Services from a “neutral” rating to a “sell” rating and set a $20.00 price objective on the stock. in a report on Tuesday, July 2nd. Barrington Research reiterated a “buy” rating and issued a $42.50 price objective on shares of KAR Auction Services in a report on Friday, June 28th. Finally, Zacks Investment Research upgraded shares of KAR Auction Services from a “sell” rating to a “hold” rating in a report on Wednesday, July 3rd. Two research analysts have rated the stock with a sell rating, two have given a hold rating and three have given a buy rating to the stock. The company presently has an average rating of “Hold” and an average target price of $39.58.

Several hedge funds have recently bought and sold shares of KAR. Maverick Capital Ltd. acquired a new stake in shares of KAR Auction Services during the 2nd quarter worth approximately $126,648,000. BlackRock Inc. lifted its holdings in shares of KAR Auction Services by 46.2% in the 1st quarter. BlackRock Inc. now owns 10,730,329 shares of the specialty retailer’s stock worth $550,575,000 after purchasing an additional 3,392,759 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in shares of KAR Auction Services by 42.1% in the 2nd quarter. Price T Rowe Associates Inc. MD now owns 5,664,232 shares of the specialty retailer’s stock worth $141,606,000 after purchasing an additional 1,676,914 shares in the last quarter. Scopia Capital Management LP lifted its holdings in shares of KAR Auction Services by 143.9% in the 2nd quarter. Scopia Capital Management LP now owns 2,565,615 shares of the specialty retailer’s stock worth $64,140,000 after purchasing an additional 1,513,721 shares in the last quarter. Finally, New Mountain Vantage Advisers L.L.C. bought a new position in shares of KAR Auction Services in the 2nd quarter worth $37,655,000. 99.53% of the stock is owned by hedge funds and other institutional investors.

KAR traded down $0.88 during trading on Friday, reaching $24.59. 1,590,622 shares of the stock were exchanged, compared to its average volume of 2,891,319. The stock has a market cap of $3.40 billion, a P/E ratio of 8.31, a price-to-earnings-growth ratio of 1.37 and a beta of 1.08. KAR Auction Services has a twelve month low of $16.41 and a twelve month high of $27.15. The stock’s 50 day moving average price is $25.46 and its two-hundred day moving average price is $45.90. The company has a debt-to-equity ratio of 1.00, a quick ratio of 1.14 and a current ratio of 1.14.

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 3rd. Stockholders of record on Friday, September 20th will be issued a $0.19 dividend. The ex-dividend date of this dividend is Thursday, September 19th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 3.09%. KAR Auction Services’s dividend payout ratio (DPR) is currently 47.30%.

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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