AutoCanada Q2 revenue misses estimates
Overview
AutoCanada Q2 revenue falls 3.1%, missing analyst expectations, per LSEG data
Adjusted EBITDA beats estimates, rising 92.4% yr/yr, reflecting cost-saving measures
Company progressing with U.S. divestiture, focusing on Canadian operations
Outlook
Company expects C$115 mln in annual cost savings by end of 2025
AutoCanada anticipates near-term softness in same-store sales
AutoCanada plans to complete U.S. exit by year-end
Result Drivers
REVENUE DECLINE - Revenue fell 3.1% due to decreased used vehicle sales and finance and insurance revenue
GROSS PROFIT INCREASE - Improved management of used vehicle inventory boosted gross profit despite lower retail unit volumes
COST SAVINGS - Operating expenses before depreciation decreased by 9.0%, contributing to higher adjusted EBITDA
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | C$1.34 bln | C$1.35 bln (6 Analysts) |
Q2 EPS |
| C$0.72 |
|
Q2 Net Income |
| C$18.88 mln |
|
Q2 Adjusted EBITDA | Beat | C$68.50 mln | C$47.30 mln (6 Analysts) |
Q2 Adjusted EBITDA Margin |
| 4.8% |
|
Q2 Gross Profit |
| C$225.37 mln |
|
Q2 Operating Income |
| C$54.67 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for AutoCanada Inc is C$27.50, about 5.3% below its August 12 closing price of C$28.95
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago
Press Release: ID:nCNWPTBJja
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