Auto Trader Group (LON:AUTO – Get Free Report) issued its earnings results on Thursday. The company reported GBX 18.10 EPS for the quarter, Digital Look Earnings reports. The company had revenue of £313.40 million during the quarter. Auto Trader Group had a return on equity of 60.53% and a net margin of 47.08%.
Here are the key takeaways from Auto Trader Group’s conference call:
- First-half results were broadly in line with expectations: revenue excluding vehicle and accessory sales was essentially flat at £301.8 million, while operating profit fell 1% to £198.5 million. Autotrader maintained full-year operating profit guidance of £395 million to £415 million and expects revenue growth to accelerate in the second half.
- Retailer numbers recovered during the half: forecourts rose from 13,600 at March-end to 13,900 at September-end, and Autotrader has re-signed two-thirds of departed retailers that are still trading. Average revenue per retailer increased 1%, though lower stock volumes weighed on the result.
- Autotrader plans to expand beyond its marketplace with Autotrader Intelligence, using proprietary vehicle data, AI models and industry integrations to develop buyer, retailer and manufacturer services. Management sees potential for incremental revenue, but did not quantify the growth opportunity and said adoption and monetization will build over time.
- Shareholder returns remained substantial: the company returned £330 million through dividends and buybacks in the first half, plans approximately £500 million of buybacks for the full year, and proposed an interim dividend up 11%. Basic EPS rose 5% to 18.1 pence, partly aided by the reduction in shares outstanding.
- Engagement softened during parts of the half, with internal measures of time spent and visits weaker in June and July; executives attributed this mainly to market conditions and said sales influence edged up year on year. Retailers continue to face cost pressures, while smaller independents’ lower stock levels reduced Autotrader’s stock-related revenue contribution.
Auto Trader Group Price Performance
LON:AUTO opened at GBX 555.40 on Friday. The company has a market cap of £4.22 billion, a P/E ratio of 16.30, a P/E/G ratio of 3.99 and a beta of 0.72. The company has a debt-to-equity ratio of 51.83, a quick ratio of 1.50 and a current ratio of 1.73. Auto Trader Group has a 52-week low of GBX 418.60 and a 52-week high of GBX 798.20. The stock’s 50-day simple moving average is GBX 504.85 and its 200 day simple moving average is GBX 497.39.
Analyst Upgrades and Downgrades
A number of research firms have commented on AUTO. Royal Bank Of Canada lowered their target price on shares of Auto Trader Group from GBX 830 to GBX 535 and set a “sector perform” rating for the company in a report on Friday, July 17th. JPMorgan Chase & Co. cut their price objective on shares of Auto Trader Group from GBX 445 to GBX 440 and set an “underweight” rating for the company in a research report on Wednesday, August 5th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 794 price target on shares of Auto Trader Group in a report on Friday. Finally, Jefferies Financial Group restated a “buy” rating and issued a GBX 640 price target on shares of Auto Trader Group in a research report on Thursday. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Auto Trader Group has a consensus rating of “Hold” and a consensus price target of GBX 559.29.
Get Our Latest Analysis on Auto Trader Group
About Auto Trader Group
Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry. Listed on the London Stock Exchange since March 2015, the company is a member of the FTSE 100 Index.
Autotrader’s purpose is Driving Change Together. Responsibly. The company uses advanced data science, artificial intelligence and scalable technology to improve how vehicles are bought and sold, while building stronger partnerships with its customers and the wider automotive ecosystem.
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