Driven Brands (NASDAQ:DRVN) Issues Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Driven Brands (NASDAQ:DRVN) announced its quarterly earnings data on Wednesday. The company reported $0.30 EPS for the quarter, missing analysts’ consensus estimates of $0.32 by ($0.02), Briefing.com reports. Driven Brands had a positive return on equity of 25.31% and a negative net margin of 9.14%.The firm had revenue of $457.33 million during the quarter, compared to analyst estimates of $459.50 million. During the same quarter in the previous year, the business earned $0.30 earnings per share.

Driven Brands Stock Down 2.2%

Shares of NASDAQ DRVN traded down $0.25 during mid-day trading on Thursday, reaching $11.35. 3,526,458 shares of the company’s stock were exchanged, compared to its average volume of 1,368,708. The business has a fifty day simple moving average of $15.73 and a 200 day simple moving average of $15.85. Driven Brands has a twelve month low of $9.80 and a twelve month high of $19.74. The company has a current ratio of 0.90, a quick ratio of 0.80 and a debt-to-equity ratio of 2.44. The firm has a market capitalization of $1.87 billion, a price-to-earnings ratio of -9.16, a PEG ratio of 1.21 and a beta of 1.04.

Analyst Upgrades and Downgrades

DRVN has been the subject of several analyst reports. Weiss Ratings reiterated a “sell (d)” rating on shares of Driven Brands in a research report on Monday, December 29th. Benchmark reaffirmed a “buy” rating on shares of Driven Brands in a report on Wednesday, December 3rd. Morgan Stanley cut their price target on Driven Brands from $20.00 to $17.00 and set an “equal weight” rating on the stock in a research note on Thursday, January 15th. JPMorgan Chase & Co. decreased their price objective on Driven Brands from $23.00 to $21.00 and set an “overweight” rating for the company in a research note on Wednesday, November 12th. Finally, William Blair raised Driven Brands from a “market perform” rating to an “outperform” rating in a research note on Wednesday, December 3rd. Five equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Driven Brands presently has an average rating of “Hold” and a consensus target price of $20.56.

Key Stories Impacting Driven Brands

Here are the key news stories impacting Driven Brands this week:

• Positive Sentiment: Company still reports positive return on equity (25.31%) and maintained the same quarterly EPS year?over?year ($0.30), and some sell?side forecasts still anticipate FY EPS. These factors could limit longer?term downside if management fixes accounting issues and execution stabilizes. MarketBeat Earnings Summary
• Neutral Sentiment: Quarterly results marginally missed expectations — $0.30 EPS vs. $0.32 consensus and $457.33M revenue vs. $459.5M estimate — a modest operational miss rather than a large shock. Investors will focus on management commentary when results are refiled. MarketBeat Earnings Summary
• Negative Sentiment: Driven Brands delayed its fourth?quarter and full?year results and announced it will restate prior financials — a major governance/controls concern that typically leads to loss of confidence and higher legal/adjustment risk. TipRanks: Delay Announcement
• Negative Sentiment: Stock suffered a large intraday drop (reported ~30% on earlier session) after the company called off an earnings release — large selloffs compound short?term volatility and can trigger margin selling. InsiderMonkey: Nosedive Coverage
• Negative Sentiment: Multiple law firms and securities litigators have opened investigations into Driven Brands over potential misstatements and the restatement (Glancy Prongay Wolke & Rotter, Ademi LLP, Rosen Law, Holzer & Holzer, others). This raises the prospect of class actions, regulatory scrutiny, and legal costs. BusinessWire: Glancy Investigation GlobeNewswire: Ademi LLP
• Negative Sentiment: Market technicals and balance?sheet caution: elevated debt-to-equity (~2.44) and sub?1 current/quick ratios increase sensitivity to near?term cash flow disruption if legal or operational setbacks persist. This magnifies risk while financials are being restated. MarketBeat: Financial Metrics

Insider Activity

In related news, insider Scott L. O’melia sold 46,875 shares of the firm’s stock in a transaction on Wednesday, January 21st. The shares were sold at an average price of $16.00, for a total transaction of $750,000.00. Following the sale, the insider directly owned 326,944 shares in the company, valued at $5,231,104. This trade represents a 12.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 3.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Driven Brands

Institutional investors have recently bought and sold shares of the company. Osaic Holdings Inc. increased its position in Driven Brands by 82.1% during the second quarter. Osaic Holdings Inc. now owns 2,087 shares of the company’s stock worth $37,000 after buying an additional 941 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in shares of Driven Brands by 744.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,103 shares of the company’s stock worth $37,000 after acquiring an additional 1,854 shares during the period. Tower Research Capital LLC TRC increased its holdings in shares of Driven Brands by 709.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,490 shares of the company’s stock worth $149,000 after acquiring an additional 7,441 shares during the last quarter. Federated Hermes Inc. increased its holdings in shares of Driven Brands by 30.5% during the 4th quarter. Federated Hermes Inc. now owns 8,727 shares of the company’s stock worth $129,000 after acquiring an additional 2,040 shares during the last quarter. Finally, Amundi bought a new stake in Driven Brands in the 4th quarter valued at $169,000. Institutional investors own 77.08% of the company’s stock.

About Driven Brands

Driven Brands Holdings Inc (NASDAQ: DRVN) is a leading North American provider of automotive aftermarket services, operating through a network of franchised and company-owned locations. The company’s platform encompasses a diverse portfolio of car care and maintenance brands, including Meineke Car Care Centers, Maaco Collision Repair & Auto Painting, Take 5 Oil Change, and Carstar Collision Repair. Driven Brands delivers a full range of services from routine maintenance and oil changes to collision repair, paint protection, and vehicle customization.

Headquartered in Charlotte, North Carolina, Driven Brands serves both individual consumers and commercial clients across the United States and Canada.