KAR Auction sees higher profit on big rise in revenue

KAR Auction Services Inc. saw a higher profit in the second quarter as revenue jumped 17 percent.

The Carmel-based company on Tuesday reported second-quarter profit of $61.8 million, or 44 cents per share, up 4 percent from $59.5 million, or 41 cents per share, in the second quarter of 2015.

Earnings, adjusted for amortization costs, were 55 cents per share. That barely missed the average prediction of 56 cents per share by five analysts surveyed by Zacks Investment Research.

The used and salvaged vehicle auctioneer posted revenue of $771.8 million in the second quarter, up from $658.3 million a year ago, surpassing Wall Street expectations. Three analysts surveyed by Zacks expected $755.2 million in revenue.

KAR said it expects full-year earnings in the range of $2.03 to $2.18 per share.

The company also announced a cash dividend of 29 cents per share, payable on Oct. 4 to stockholders of record as of Sept. 21.

KAR shares closed at $42.45 each Tuesday prior to the quarterly earnings release. Shares have risen 15 percent since the beginning of the year.
 

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