Zacks: Analysts Anticipate KAR Auction Services Inc (NYSE:KAR) to Announce $0.40 EPS

Equities analysts expect KAR Auction Services Inc (NYSE:KAR) to announce earnings of $0.40 per share for the current quarter, Zacks reports. Four analysts have made estimates for KAR Auction Services’ earnings, with the highest EPS estimate coming in at $0.42 and the lowest estimate coming in at $0.37. KAR Auction Services reported earnings per share of $0.82 in the same quarter last year, which would suggest a negative year-over-year growth rate of 51.2%. The business is expected to issue its next quarterly earnings report on Tuesday, August 6th.

On average, analysts expect that KAR Auction Services will report full-year earnings of $1.27 per share for the current year, with EPS estimates ranging from $1.24 to $1.30. For the next year, analysts anticipate that the firm will post earnings of $1.56 per share, with EPS estimates ranging from $1.34 to $2.02. Zacks Investment Research’s EPS averages are an average based on a survey of sell-side research analysts that follow KAR Auction Services.

KAR Auction Services (NYSE:KAR) last released its quarterly earnings results on Tuesday, May 7th. The specialty retailer reported $0.70 EPS for the quarter, missing analysts’ consensus estimates of $0.77 by ($0.07). KAR Auction Services had a return on equity of 25.43% and a net margin of 8.17%. The company had revenue of $1.05 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the firm posted $0.82 earnings per share. The firm’s quarterly revenue was up 10.1% compared to the same quarter last year.

KAR has been the topic of a number of recent analyst reports. SunTrust Banks boosted their price target on shares of Constellation Brands from $180.00 to $190.00 and gave the stock a “hold” rating in a research report on Monday, July 1st. Guggenheim lifted their price objective on shares of Equinix from $505.00 to $540.00 and gave the stock a “sell” rating in a research note on Tuesday, July 2nd. Barrington Research lifted their price objective on shares of Franklin Covey from $34.00 to $40.00 and gave the stock an “outperform” rating in a research note on Friday, June 28th. Zacks Investment Research raised shares of HB Fuller from a “sell” rating to a “hold” rating in a research note on Wednesday, July 3rd. Finally, Robert W. Baird started coverage on shares of IAA in a research note on Friday, June 28th. They issued an “outperform” rating on the stock. Two analysts have rated the stock with a sell rating, four have issued a hold rating and three have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $42.50.

Shares of KAR stock traded down $0.04 during midday trading on Thursday, reaching $24.72. 330,328 shares of the company were exchanged, compared to its average volume of 4,122,143. KAR Auction Services has a 12 month low of $16.41 and a 12 month high of $26.00. The stock has a market capitalization of $3.32 billion, a P/E ratio of 8.35, a P/E/G ratio of 2.03 and a beta of 1.10. The business has a 50 day simple moving average of $50.37. The company has a debt-to-equity ratio of 2.38, a quick ratio of 1.17 and a current ratio of 1.17.

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 17th. Stockholders of record on Monday, June 3rd were paid a $0.35 dividend. The ex-dividend date was Friday, May 31st. This represents a $1.40 annualized dividend and a dividend yield of 5.66%. KAR Auction Services’s dividend payout ratio is currently 47.30%.

Several institutional investors and hedge funds have recently made changes to their positions in KAR. Prudential Financial Inc. raised its stake in KAR Auction Services by 11.1% in the 4th quarter. Prudential Financial Inc. now owns 9,020 shares of the specialty retailer’s stock worth $430,000 after acquiring an additional 900 shares during the last quarter. PNC Financial Services Group Inc. raised its stake in KAR Auction Services by 8.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,083 shares of the specialty retailer’s stock worth $147,000 after acquiring an additional 236 shares during the last quarter. Commonwealth Bank of Australia raised its stake in KAR Auction Services by 7.5% in the 4th quarter. Commonwealth Bank of Australia now owns 8,600 shares of the specialty retailer’s stock worth $410,000 after acquiring an additional 600 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in KAR Auction Services by 4.8% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,397,787 shares of the specialty retailer’s stock worth $66,698,000 after acquiring an additional 63,519 shares during the last quarter. Finally, Gideon Capital Advisors Inc. purchased a new position in KAR Auction Services in the 4th quarter worth $475,000. 99.45% of the stock is currently owned by institutional investors.

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 and Estimates for KAR Auction Services (NYSE:KAR)

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