Digital vehicle marketplace OPENLANE (NYSE:KAR) will be announcing earnings results tomorrow after market close. Here’s what you need to know.

OPENLANE beat analysts’ revenue expectations by 8.2% last quarter, reporting revenues of $455 million, up 12% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ full-year EPS guidance estimates.

Is OPENLANE a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting OPENLANE’s revenue to grow 5.5% year on year to $453.7 million, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.OPENLANE Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. OPENLANE has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.7% on average.

Looking at OPENLANE’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 39.9%, beating analysts’ expectations by 17%, and Steelcase reported revenues up 1.7%, in line with consensus estimates. CECO Environmental traded up 23.9% following the results while Steelcase was also up 6.5%.

Read our full analysis of CECO Environmental’s results here and Steelcase’s results here.

There has been positive sentiment among investors in the business services & supplies segment, with share prices up 11.2% on average over the last month. OPENLANE is up 6.1% during the same time and is heading into earnings with an average analyst price target of $23.43 (compared to the current share price of $19.15).

Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

View Comments