KAR Auction Services Profit Falls 27% on Lower Auction Margins
Auto-auction firm KAR Auction Services (NYSE: KAR) said on Aug. 7 that its second-quarter net income from continuing operations fell 27% from a year ago, to $27.4 million, on lower margins in its core auction business, and expenses related to a corporate spinoff in June. Revenue rose 15% to $719.1 million.
Excluding one-time items, KAR's post-spinoff operations earned $0.30 per share, falling short of Wall Street's consensus estimate of $0.37. But revenue, which rose 15% to $719.1 million, beat analysts' $691.5 million estimate.
Shares fell sharply after the news was announced.
Quelle Fool.com
