AutoCanada (TSE:ACQ) Releases Earnings Results

AutoCanada (TSE:ACQ) announced its quarterly earnings results on Wednesday. The company reported C$0.21 earnings per share for the quarter, FiscalAI reports. AutoCanada had a net margin of 0.33% and a return on equity of 3.40%. The business had revenue of C$1.19 billion for the quarter.

Here are the key takeaways from AutoCanada’s conference call:

• AutoCanada reported Q1 adjusted EBITDA from continuing operations of CAD 31 million, down from CAD 43 million a year ago, with results described as largely in line with expectations but below long-term targets.
• Management said it is seeing early signs of operational improvement in the dealership business, especially in used vehicle volumes and profitability, with March through May trends improving sequentially.
• Used vehicle profitability remained the main pressure point, with Q1 used gross profit per unit at CAD -48 as the company worked through aged inventory in a highly competitive market.
• The collision segment continued to grow, with gross profit up year over year, and management highlighted strong underlying demand, OEM certifications, insurer relationships, and the acquisition of Modern Auto Body in Edmonton.
• AutoCanada made progress on balance sheet improvement through U.S. dealership divestitures, with about CAD 65.8 million in gross proceeds received so far and roughly CAD 130 million expected in total, mostly for debt reduction; it also extended its credit facility through 2028.

AutoCanada Stock Down 3.8%

TSE ACQ traded down C$0.82 during trading hours on Wednesday, hitting C$20.93. 47,735 shares of the company traded hands, compared to its average volume of 66,471. The business’s 50-day moving average is C$21.28 and its 200-day moving average is C$23.42. AutoCanada has a twelve month low of C$14.00 and a twelve month high of C$35.48. The company has a debt-to-equity ratio of 409.72, a quick ratio of 0.25 and a current ratio of 1.07. The stock has a market capitalization of C$481.75 million, a price-to-earnings ratio of 31.71, a P/E/G ratio of 0.30 and a beta of 1.85.

Analyst Ratings Changes

A number of research firms have recently issued reports on ACQ. ATB Cormark Capital Markets lowered their price objective on shares of AutoCanada from C$25.00 to C$22.00 and set a “sector perform” rating on the stock in a report on Thursday, March 19th. Acumen Capital lifted their price objective on shares of AutoCanada from C$35.50 to C$39.25 and gave the company a “speculative buy” rating in a report on Tuesday, January 27th. Royal Bank Of Canada lowered their price objective on shares of AutoCanada from C$28.00 to C$18.00 in a report on Thursday, March 19th. National Bank Financial reduced their price target on AutoCanada from C$24.00 to C$22.00 and set a “sector perform” rating for the company in a research report on Wednesday, April 8th. Finally, Canaccord Genuity Group cut AutoCanada from a “buy” rating to a “hold” rating and reduced their price target for the company from C$42.00 to C$22.00 in a research report on Thursday, March 19th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus target price of C$23.89.

AutoCanada Company Profile

AutoCanada Inc operates car dealerships in Canada. The company offers new and used vehicles, spare parts, maintenance services, and customer financing. AutoCanada retails brands such as Chrysler, Dodge, Jeep, Ram, Cadillac, Chevrolet, Buick, GMC, Audi, Volkswagen, BMW, Mini, Infiniti, Nissan, Hyundai, Kia, Fiat, Mitsubishi, and Subaru. The majority of revenue is generated in the new-vehicles sales segment.