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.
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