KAR Earnings Prediction
The chart below shows how KAR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KAR sees a +0.91% change in stock price 10 days leading up to the earnings, and a +3.59% change 10 days following the report. On the earnings day itself, the stock moves by -0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
KAR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
492.00M
25.73%
9.72%
Gross Margin
45.63%
10.75%
18.55%
Operating Margin
15.73%
0.77%
-5.58%
Net Margin
10.63%
205.46%
67.93%
EPS
0.43
1333.33%
258.33%
No Data Available
KAR Earnings Analysis
Openlane Inc Corporation (KAR.N) Earnings Conference Call
Positive
Earnings Beat Expectations: KAR Auction Services, Inc. beats earnings expectations with reported EPS of $0.21, exceeding expectations of $0.20.
Revenue Growth Surge: Consolidated revenue grew by 12% in Q4 2024, reflecting strong market demand and operational performance.
EBITDA Growth and Efficiency: Consolidated adjusted EBITDA increased by 18%, driven by a 9% rise in Marketplace volumes, indicating effective cost management and operational efficiency.
Marketplace Segment Growth: The Marketplace segment achieved a 30% increase in adjusted EBITDA, generating $31 million in Q4, showcasing the strength of the business model.
Marketplace Segment Growth: The company reported a full-year adjusted EBITDA of $293 million, up 24% in the Marketplace segment, highlighting robust financial health.
Strong Operational Cash Flow: Cash flow from operations reached $293 million, demonstrating strong liquidity and operational efficiency.
Marketplace Volume Growth: The company experienced its seventh consecutive quarter of year-over-year volume growth in the Marketplace segments, with dealer volumes increasing by 15% in Q4.
Gross Merchandise Value Growth: OPENLANE's gross merchandise value grew by 12% to $27 billion, indicating strong market traction and customer engagement.
Future Growth Strategy: The company is well-positioned for future growth with a clear strategy focused on enhancing marketplace offerings, technology, and customer experience.
Innovation and Growth Strategies: Investments in innovation and go-to-market strategies are expected to drive further growth and improve customer outcomes in 2025.
Negative
Revenue Pressure Ahead: The company is facing a challenging period of off-lease maturities, which is expected to continue through 2025, indicating potential revenue pressure in the near term.
Finance Revenue Decline: Despite a positive overall performance, the Finance segment reported a 5% decline in total finance revenues due to lower vehicle values and interest rates, which could impact profitability.
Impact of Business Sale: The sale of the Automotive Key business, while strategic, represents a loss of approximately 2% to 3% of consolidated net revenue and adjusted EBITDA, indicating a reduction in revenue sources.
Off-Lease Supply Recovery: The company anticipates that 2025 will be the bottom of the cycle for off-lease supply, suggesting that recovery may take time and could affect growth expectations in the short term.
Macro Economic Challenges: There are macro uncertainties affecting the industry, including a strengthening US dollar, which may create translation headwinds and impact financial performance.
KAR FAQs
How does KAR typically perform around its earnings report dates?
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KAR Earning Call Sentiment
KAR Auction Services, Inc. (NYSE:KAR) Q4 2024 Earnings Call Transcript
KAR.N
0.05%Positive
The earnings call reveals strong financial performance with record high revenue, increased EBITDA, and a positive EPS surprise. The marketplace growth, technology investments, and a robust share repurchase program further bolster the outlook. The Q&A section highlights steady volumes and a confident stance despite external uncertainties. However, cautious management responses about tariffs and trade wars suggest some risk, but overall, the sentiment remains positive due to strong operational metrics and strategic initiatives.
