Will Auto Trader Continue To Speed Ahead Following Thursday’s FY Results?
Spreadex | May 31, 2019 12:13
Though it is yet to update investors in 2019, the company has had a remarkable year so far. Opening at £4.49, it hasn’t really slowed down, climbing to an all-time high of £6.01 on May 28th. It hasn’t fallen too far from that level in the intervening session, with Auto Trader Group Plc (LON:AUTOA) at a current trading price of £5.93. That’s a near 32% increase since 2019 began.
The last statement the firm released was actually all the way back at the end of November, when it posted its half year results. Revenue was up 7% to £176.8 million, while average revenue per retailer forecast per month added £152 to £1826. Operating profit jumped 10% to £120.6 million, with pre-tax profit climbing 9% to £114.5 million and basic earnings rising 12% to 9.78p per share.
Perhaps most enticingly, Auto Trader said its full year revenue should ‘exceed previous guidance’, though ARPR growth will likely be lower than in the first half. As for Brexit, the company stated that the effect will only be ‘as much as it impacts on both general levels of consumer confidence and the supply of new cards into the UK market.’
Heading into Thursday’s full year results, analysts are expecting revenue to rise 6.4% to £351.3 million, with operating profit up 8.3% to £239 million and basic EPS rising nearly 11% to 19.7p. Investors will also want to hear word on Auto Trader’s joint venture with Cox Automotive UK, Dealer Auction, announced at the end of 2018.
Auto Trader Group has a consensus rating of ‘Hold’ alongside an average target price of £4.78.
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