Boston, MA 08/12/2014 (wallstreetpr) – Provider of web-based solutions to the automotive retail industry DealerTrack Technologies Inc (NASDAQ:TRAK) delivered a strong jump in its top line performance for the second quarter driven by acquisition and organic growth. As a result, its bottom line came in more than the Street analysts’ estimations. Aside from this, the company had also lifted its guidance for the current year. These favorable factors also drove investors’ to shop for the stock in the extended hours of trading on Monday that jumped over 13%.
Outlook
DealerTrack Technologies Inc (NASDAQ:TRAK) expects to generate revenue of $829 – $843 million for the current year 2014, which was higher than its earlier guidance of $814 – $826 million. Even the lower end of the forecast is higher by about $10 over the Wall Street analysts’ estimation of $819.3 million.
On a GAAP basis, DealerTrack had narrowed its loss per share projection to 23 – 13 cents a share of loss from the earlier forecast of 34 – 23 cents a share of loss. However, on an adjusted basis, the company had lifted its earnings outlook to $1.47 – $1.56 a share from $1.42 – $1.53 a share. The mid-point of $1.51 a share is higher than the Street analysts’ predictions of $1.48 a share.
CEO Comments
The company’s chairman and CEO Mark O’Neil said that the company was excited on the contributions from new subscriptions apart from advertising solutions impact on its overall growth and revenue visibility. Its organic growth achievement of 21% had allowed itself to boost its outlook and the confidence to deliver future growth by the integrating suite of technologies for the benefit of the automotive retailing industry.
2Q Results
DealerTrack Technologies Inc (NASDAQ:TRAK) reported a net loss of $1.4 million or a loss of three cents a share in the second quarter versus net income of $3.8 million or earnings of nine cents a share in the year-ago quarter. On an adjusted basis, it would have earned $22.4 million or 41 cents a share, higher than $16.7 million or 37 cents a share in the prior year quarter. Street analysts’ expected earnings of 37 cents a share.
The company’s revenue jumped 84.6% to $224.8 million from $121.8 million in the previous year quarter, which was more than $10 million higher than the analysts’ predictions of $213.45 million.
