Stock Monitor: Barnes & Noble Post Earnings Reporting
LONDON, UK / ACCESSWIRE / December 07, 2017 / Active-Investors free earnings report on KAR Auction Services, Inc. (NYSE: KAR) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=KAR. KAR Auction Services reported its third quarter fiscal 2017 operating results on October 31, 2017. The used and salvaged vehicle auctioneer outperformed top- and bottom-line expectations raised its dividend by 9.4% and increased earnings guidance for the fiscal year. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is currently working on the research report for Barnes & Noble, Inc. (NYSE: BKS), which also belongs to the Services sector as the Company KAR Auction Services. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, KAR Auction Services most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/?symbol=KAR
Earnings Highlights and Summary
For the third quarter of 2017, KAR Auction reported revenue of $843.0 million, up 7% compared with revenue of $789.6 million for Q3 2016, with 46% incremental margins based on increased volume, decreased loan loss rate, and selling, general, and administrative (SG&A) control. The Company's revenue numbers topped analysts' estimates of $841.4 million.
For Q3 2017, KAR Auction's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) increased 13% to $209.3 million compared to adjusted EBITDA of $184.8 million for Q3 2016.
KAR Auction's net income for Q3 2017 advanced 15% to $62.8 million, or $0.46 per diluted share, compared to net income of $54.4 million, or $0.39 per diluted share, in Q3 2016. The Company's operating adjusted net income per diluted share increased 14% to $0.57 for the reported quarter compared to operating adjusted net income per diluted share of $0.50 for the year earlier quarter, and came in ahead of Wall Street's estimates of $0.49 per share.
KAR Auction's Segment Results
During Q3 2017, the ADESA Auction service segment's revenue grew 4% to $477.1 million versus $457.4 million in Q3 2016. The segment's volume was up 8% on a y-o-y basis, driven by the 34% increase in the online only volume, partially offset by a 1% decline in physical auction volumes. In the reported quarter ADESA's adjusted EBITDA grew 9% on a y-o-y basis and adjusted EBITDA margin advanced to 25.6%, up from 24.4% in the prior year's same quarter.
For Q3 2017, the AFC segment's revenue jumped 10% to $78.2 million versus revenue of $71.2 million in Q3 2016, despite a 6% decline in the number of loan transactions. The decline in loan transactions was attributed to the decline in physical auction volumes throughout the industry in the reported quarter and the level of activity the Company experienced with franchise dealers buying in the lanes in certain markets.
In Q3 2017, the Insurance Auto Auctions segment's revenue totaled $287.7 million compared to revenue of $261.0 million in Q3 2016. The segment posted adjusted EBITDA growth of 18% on a revenue growth of 10% and strong expense control that saw SG&A down slightly from the prior year. Adjusted EBITDA margins at Insurance Auto Auctions were approximately 27% in the reported quarter, driven by the continued strong incremental margin performance in this business.
Cash Matters
As of September 30, 2017, KAR Auction's cash equivalents totaled $432.1 million compared to cash of $201.8 million as on December 31, 2016. For the nine months ended September 30, 2017, the Company's net cash provided by operating activities totaled $487.9 million compared to $290.9 million in the year ago same period.
KAR Auction announced a cash dividend of $0.35 per share on its common stock, an increase of $0.03 per share or 9.4% from the previous dividend. The dividend is payable on January 05, 2018, to stockholders of record as of the close of business on December 20, 2017.
Outlook
For FY17, KAR Auction is forecasting net income per share in the range of $1.68 to $1.78 per share compared to the earlier forecast of $1.57 to $1.67 per share. The Company is estimating operating adjusted net income in the range of $2.30 to $2.40 per share compared to the previous forecast of $2.15 to $2.25 per share.
Stock Performance Snapshot
December 06, 2017 - At Wednesday's closing bell, KAR Auction Services' stock slightly dropped 0.89%, ending the trading session at $50.29.
Volume traded for the day: 459.00 thousand shares.
Stock performance in the last month – up 2.09%; previous three-month period – up 12.18%; past twelve-month period – up 17.80%; and year-to-date – up 18.00%
After yesterday's close, KAR Auction Services' market cap was at $6.86 billion.
Price to Earnings (P/E) ratio was at 29.60.
The stock has a dividend yield of 2.78%.
The stock is part of the Services sector, categorized under the Specialty Retail, Other industry.
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