KAR misses quarterly profit forecast amid surge in revenue

KAR Auction Services Inc. missed Wall Street expectations with its fourth-quarter earnings despite revenue that exceeded predictions.

The Carmel-based used and salvaged vehicle auctioneer on Tuesday reported fourth-quarter profit of $45.5 million, or 33 cents per share. That was down from $48.3 million, or 35 cents per share, in the same quarter of 2015.

Earnings, adjusted for one-time gains and costs, were reported at 45 cents per share, missing the forecast of 48 cents by six analysts surveyed by Zacks Investment.

KAR’s revenue of $813.7 million in the period topped the $695.7 million in revenue from the year-ago period and was better than the $782.5 million predicted by analysts.

For the year, the company reported profit of $222.4 million, or $1.60 per share. Revenue was reported as $3.15 billion.

KAR Auction Services said it expects full-year earnings in the range of $2.15 to $2.25 per share.

The company said it repurchased about 1.9 million shares of common stock in the open market for $80.4 million in the fourth quarter.

It announced a cash dividend of 32 cents per share, payable on April 4, to stockholders of record as of March 22.

KAR shares closed at $46.69 each Tuesday prior to the earnings announcement. The stock is up 9.5 percent since the beginning of the year and 41 percent over the last 12 months.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: You can comment on IBJ stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets on
{{ count_down }}