DealerTrack Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of automotive retail software provider DealerTrack Holdings (NAS: TRAK) are speeding up today, topping out at a 19% gain so far, after the company reported quarter earnings last night.

So what: Revenue in the third quarter came out to $95.8 million, clearing the way for non-GAAP earnings per share of $0.34. Both figures zoomed past the consensus estimates of $88.5 million in sales and $0.22 earnings per share. Full-year guidance was just as rosy.

Now what: For its fiscal 2011, DealerTrack is forecasting earnings per share in the range of $0.94-$0.99, higher than its previous guidance of $0.81-$0.86 and also topping the consensus of $0.84. Full-year revenue is expected to be between $344 million and $347 million, which was similarly raised and topped estimates. Credit in the auto market is becoming more available, driving up sales and helping demand for DealerTrack's offerings.

Interested in more info on DealerTrack? Add it to your watchlist byclicking here.

At the time thisarticle was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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