KAR Auction Services Earnings Up Next

KAR Auction Services (NYS: KAR) is expected to report Q2 earnings on Aug. 6. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict KAR Auction Services's revenues will expand 6.3% and EPS will expand 15.4%.

The average estimate for revenue is $518.7 million. On the bottom line, the average EPS estimate is $0.30.


Revenue details
Last quarter, KAR Auction Services booked revenue of $557.6 million. GAAP reported sales were 10% higher than the prior-year quarter's $506.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.31. GAAP EPS of $0.21 for Q1 were 11% higher than the prior-year quarter's $0.19 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
For the preceding quarter, gross margin was 40.6%, 630 basis points worse than the prior-year quarter. Operating margin was 14.0%, 80 basis points worse than the prior-year quarter. Net margin was 5.2%, 10 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.10 billion. The average EPS estimate is $1.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 21 members out of 26 rating the stock outperform, and five members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give KAR Auction Services a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KAR Auction Services is outperform, with an average price target of $23.81.

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The article KAR Auction Services Earnings Up Next originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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