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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowCarmel-based KAR Auction Services Inc. topped Wall Street expectations with what CEO Jim Hallett called “fantastic” second-quarter results.
The used and salvaged vehicle auctioneer reported profit of $57.2 million, or 41 cents per share, in the quarter, down from $61.8 million, or 44 cents per share, in the same period of 2016.
But earnings adjusted for one-time gains and costs came in at $90.6 million, or 65 cents per share, up 18 percent from a year ago.
The average prediction of six analysts surveyed by Zacks Investment Research was for adjusted earnings of 58 cents per share.
KAR reported revenue of $858 million in the period, topping analyst expectations of $845.3 million. Revenue was up 9 percent, from $788.5 million, in the year ago period.
“The outlook for KAR for the second half of 2017 and even beyond 2017 is very positive,” Hallett said Wednesday on a conference call about the second quarter results. “I really like how things are coming together and the investments that we've made.”
KAR shares closed Wednesday at their highest price in nearly two months, at $43.73 each. Shares were down 1.4 percent Thursday morning along with a general stock market decline.
The company said it expects full-year earnings in the range of $2.15 to $2.25 per share.
The company on Thursday also announced the launch of an operating segment called KAR Remarketing Services to oversee the company’s AutoVIN, Dent Demon, High Tech Locksmiths, and PAR North America businesses.
David Vignes, KAR’s executive vice president of enterprise optimization, was promoted to president of the new operating group.
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