AutoCanada (TSE:ACQ) Posts Earnings Results

AutoCanada (TSE:ACQ) posted its earnings results on Wednesday. The company reported C$0.21 EPS 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%

Shares of TSE:ACQ opened at C$20.93 on Thursday. The company has a current ratio of 1.07, a quick ratio of 0.25 and a debt-to-equity ratio of 409.72. The company has a fifty day simple moving average of C$21.18 and a 200 day simple moving average of C$23.37. The firm has a market cap of C$481.75 million, a PE ratio of 31.71, a price-to-earnings-growth ratio of 0.30 and a beta of 1.85. AutoCanada has a 12-month low of C$14.00 and a 12-month high of C$35.48.

Analysts Set New Price Targets

ACQ has been the subject of a number of research analyst reports. National Bank Financial dropped their price target on shares of AutoCanada from C$24.00 to C$22.00 and set a “sector perform” rating for the company in a research note on Wednesday, April 8th. Acumen Capital lifted their price target on shares of AutoCanada from C$35.50 to C$39.25 and gave the stock a “speculative buy” rating in a research note on Tuesday, January 27th. Canaccord Genuity Group lowered shares of AutoCanada from a “buy” rating to a “hold” rating and dropped their price target for the stock from C$42.00 to C$22.00 in a research note on Thursday, March 19th. BMO Capital Markets dropped their price target on shares of AutoCanada from C$36.00 to C$24.00 in a research note on Friday, March 20th. Finally, Royal Bank Of Canada dropped their price target on shares of AutoCanada from C$28.00 to C$18.00 in a research note on Thursday, March 19th. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target 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.