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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowKAR Auction Services Inc. on Tuesday reported first-quarter earnings and revenue that exceeded analyst expectations.
The Carmel-based vehicle auctioneer turned a profit of $60.7 million, or 44 cents per share, exceeding a profit of $54.5 million, or 39 cents per share, in the same quarter of 2015.
Earnings, adjusted for amortization costs and to extinguish debt, came to 55 cents per share, topping the average estimate of 51 cents per share by six analysts surveyed by Zacks Investment Research.
KAR posted revenue of $745 million in the period, also exceeding Street forecasts. Four analysts surveyed by Zacks expected $692 million. Revenue in the year-ago quarter was $632.4 million.
The company also announced a cash dividend of 29 cents per share on its common stock. The dividend is payable July 5 to stockholders of record as of June 22.
KAR also raised its 2016 guidance for adjusted earnings from a range of $725 million to $750 million to a range of $735 million to $760 million.
KAR shares were up 7 percent late Wednesday morning, to $38.97 each.
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