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Kar Auction Services Inc (KAR)
NYSE:KAR
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Earnings Data
Report Date
Feb 25, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
$0.21Last Year’s EPS
$0.16Same Quarter Last Year
Strong Buy
Based on 4 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Nov 06, 2024
|% Change Since: 17.28%
|Next Earnings Date:Feb 25, 2025
Earnings Call Sentiment|Positive
The earnings call reflects a generally positive outlook for OPENLANE, highlighted by strong adjustments in EBITDA growth, significant technological advancements, and robust cash flow generation. While there are challenges in revenue flatness and potential headwinds in future commercial volumes, the company's strategic investments and improvements in the dealer segment and marketplace participation provide a strong foundation for future growth.Company Guidance
During the KAR Earnings Call for Q3 2024, the executives provided optimistic guidance based on several key metrics. OPENLANE reported a 10% increase in adjusted EBITDA to $75 million, and a year-to-date cash generation of $260 million from operations. The Marketplace segment showed a 6% volume growth, contributing nearly 50% of consolidated adjusted EBITDA, which is a rise from approximately 39% in the previous year. The segment achieved $36 million in adjusted EBITDA, marking a 34% increase year-over-year. The Finance segment, AFC, generated $39 million in adjusted EBITDA. Despite lower off-lease volumes anticipated in 2025, the company remains positive about long-term growth, expecting improvements in dealer volumes and market share. Adjusted EBITDA guidance was updated to a range of $285 million to $295 million for the year. Additionally, the executives emphasized strategic investments in technology and customer experience as significant drivers of future growth.Significant Increase in Adjusted EBITDA
OPENLANE delivered $75 million in adjusted EBITDA, representing a 10% increase over the prior year.
Marketplace Segment Growth
The Marketplace segment grew revenue and gross profit with a 34% increase in adjusted EBITDA compared to the third quarter of last year.
Strong Cash Flow Generation
Year-to-date, OPENLANE generated $260 million in cash from operations.
Digital and Technological Advancements
Investments in technologies like Visual Boost AI, Code Boost IQ, and the integration of AI into operational processes are enhancing customer experience and operational efficiency.
Positive Dealer Volume Growth
Dealer volumes grew by 3% in the third quarter, showing improved performance versus the first half of the year.
AFC's Strong Contribution
AFC generated approximately $39 million of adjusted EBITDA, with strong cash flow characteristics supporting overall capital allocation.
Increase in Gross Merchandise Value
The marketplace facilitated a gross merchandise value of nearly $7 billion, which was a 12% increase over the same quarter last year.
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KAR Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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KAR Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Nov 06, 2024 | $17.48 | $19.56 | +11.90% |
| Aug 07, 2024 | $16.72 | $16.55 | -1.02% |
| May 01, 2024 | $17.45 | $17.58 | +0.74% |
| Feb 20, 2024 | $14.15 | $14.69 | +3.82% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Kar Auction Services Inc (KAR) report earnings?
Kar Auction Services Inc (KAR) is schdueled to report earning on Feb 25, 2025, TBA Not Confirmed.
What is Kar Auction Services Inc (KAR) earnings time?
Kar Auction Services Inc (KAR) earnings time is at Feb 25, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KAR EPS forecast?
KAR EPS forecast for the fiscal quarter 2024 (Q4) is $0.21.
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