Car Group shares dive as HY result misses estimates
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More news: Car Group shares retreated in early trading as the carsales owner's first-half results fell short of market estimates.
Car Group shares were down 5.8% to $38.66 by 10:35am AEDT.
The company's results came in just below consensus estimates for proforma EBITDA and adjusted net profit after tax.
Meanwhile, full-year revenue guidance at its North American business Trader Interactive was lowered from "good" to "solid", though with full-year EBITDA guidance unchanged.
What they said: "While this is a reasonable result, it is a miss relative to consensus, and we expect the strong run into the results release will mean the stock likely underperforms the market today," said E&P Capital analyst Entcho Raykovski.
Car Group posts 5% growth in first-half profit
The news: Carsales owner Car Group reported a 5% rise in first-half profit, with Latin America emerging as the company's biggest growth market.
The numbers: Car Group posted a net profit after tax of $123 million for the six months to December 2024, up 5% compared to the prior corresponding period.
Revenue rose 9% year on year to $579 million, while EBITDA grew 9% to $292 million.
Car Group declared a 50% franked interim dividend of 38.5 cents per share, up 12% from a year earlier.
The context: Car Group chief executive Cameron McIntyre said the Australian automotive market has continued to be resilient over the last six months despite ongoing cost of living and interest rate pressure on consumers.
The online vehicle marketplace said that current consumer trends favour used cars over new car purchases, with vehicle prices edging lower from post-pandemic highs.
The group noted that "outstanding growth" at its webmotors business in Brazil saw Latin America revenue climb 30% to $97 million on a constant currency basis, the highest growth across its markets.
The source: ASX announcement
