KAR turns higher-than-expected quarterly profit despite missing revenue projections

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KAR Auction Services Inc. turned a third-quarter profit that exceeded expectations but missed revenue predictions by analysts.

The Carmel-based vehicle auctioneer on Tuesday reported a profit of $47.1 million, or 23 cents per share, compared with $34.4 million, or 26 cents per share, in the same quarter of 2019.

Earnings, adjusted for one-time gains and costs, came to 45 cents per share, topping the average estimate of seven analysts surveyed by Zacks Investment Research for adjusted earnings of 28 cents per share.

KAR reported revenue of $593.6 million in the period, down from $701.9 million a year ago. Five analysts surveyed by Zacks expected revenue of $630.3 million.

The company said its results for the first nine months of 2020 have been “significantly impacted by the COVID-19 pandemic.”

KAR shares closed at $16.31 each on Tuesday prior to the earnings announcement, a drop of 34% in the last 12 months.

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