Driven Brands Holdings (DRVN) Earnings Preview: What to Expect on October 31st
Get ready for Driven Brands Holdings (DRVN) to release its quarterly earnings on Thursday, October 31st, 2024. Investors are keenly watching to see if the automotive services company can deliver on expectations and provide a positive outlook for the future.
Analysts’ Expectations and Key Metrics
Analysts are forecasting an earnings per share (EPS) of $0.22 for the quarter. While this is a positive sign, the market is hoping for more – a beat on estimates and strong guidance for the next quarter. Keep in mind that guidance can significantly impact stock prices, making it a key factor for investors to consider.
Looking Back at Past Performance
In the previous earnings release, Driven Brands Holdings surpassed EPS estimates by $0.07. However, the stock price experienced a 6.48% drop in the following trading session. Here’s a quick look at the company’s past performance and how the stock reacted:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | $0.28 | $0.35 | -6.0% |
| Q1 2024 | $0.19 | $0.23 | -1.0% |
| Q4 2023 | $0.19 | $0.19 | 4.0% |
| Q3 2023 | $0.18 | $0.20 | 7.0% |
Analyst Sentiment and Peer Comparison
To help investors gauge market sentiment, it’s important to consider analyst ratings and price targets. For Driven Brands Holdings, the consensus rating is
Outperform
, based on 6 analyst ratings. The average one-year price target stands at $17.83, suggesting a potential 26.45% upside.Let’s compare Driven Brands Holdings to its peers: VSE, Vestis, and Openlane.
| Company | Consensus Rating | 1-Year Price Target | Potential Upside/Downside |
|—|—|—|—|
| Driven Brands Hldgs | Outperform | $17.83 | 26.45% Upside |
| VSE | Buy | $107.5 | 662.41% Upside |
| Vestis | Neutral | $13.1 | 7.09% Downside |
| Openlane | Outperform | $25.0 | 77.3% Upside |
Key Takeaways from Peer Analysis
*Driven Brands Holdings holds the top position for Revenue Growth and Gross Profit among its peers. However, it falls behind in Return on Equity.*
A Deeper Dive into Driven Brands Holdings’s Financial Performance
*
Market Capitalization:
Driven Brands Holdings exhibits a smaller market capitalization than its peers, suggesting a smaller scale relative to its competitors.*
Revenue Growth:
The company has shown solid revenue growth over the past three months, achieving a 0.78% growth rate as of June 30th, 2024. This signifies an increase in top-line earnings, though it trails behind the average growth rate for the Industrials sector.*
Net Margin:
Driven Brands Holdings’s net margin falls below industry benchmarks, highlighting potential challenges in achieving strong profitability. With a net margin of 4.93%, the company may need to focus on cost control.*
Return on Equity (ROE):
The company’s ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. An ROE of 3.26% suggests possible obstacles in maximizing financial returns.*
Return on Assets (ROA):
Driven Brands Holdings’s ROA is also below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.51%, the company may face difficulties in achieving optimal financial returns.*
Debt Management:
Driven Brands Holdings faces challenges in debt management, with a debt-to-equity ratio higher than the industry average (4.46). This signifies increased financial risk, requiring close attention.Driven Brands Holdings: A Look at the Company
Driven Brands Holdings Inc. is a leading automotive services company in North America. Its platform caters to a wide range of retail and commercial customers, offering a comprehensive suite of services, including:
* Paint and Collision Repair
* Glass Repair and Replacement
* Oil Changes
* Car Washes
Driven Brands Holdings strives to provide high-quality, reliable services to its customers, encompassing their diverse needs.
Stay Informed with Our Earnings Calendar
For all the latest earnings releases from Driven Brands Holdings, visit our earnings calendar on our website.
