Auto Trader Group (LON:AUTO) Issues Earnings Results

Auto Trader Group (LON:AUTO) announced its quarterly earnings results on Thursday. The company reported GBX 34.17 EPS for the quarter, Digital Look Earnings reports. The company had revenue of £624.30 million during the quarter. Auto Trader Group had a return on equity of 51.86% and a net margin of 47.69%.

Here are the key takeaways from Auto Trader Group’s conference call:

• Auto Trader said it grew full-year revenue, operating profit, and EPS despite a tougher trading backdrop, with group revenue up 4% to GBP 585.3 million and operating profit up 4% to GBP 408 million.
• The company acknowledged a weaker second half, driven by pressure on retailer profitability, faster stock-turn, and feedback around the accelerated rollout of Deal Builder, which contributed to higher cancellations and a lower FY 2027 starting run rate.
• Management said retailer numbers, stock, and upsells have been improving since year-end and that the business has “passed the low point,” with April and May trends showing recovery in forecourts and paid stock.
• The board announced a more aggressive capital return policy, expecting to return over GBP 1 billion to shareholders across FY 2026 and FY 2027 combined, while also planning about GBP 500 million of buybacks in FY 2027.
• FY 2027 guidance calls for group operating profit of GBP 395 million to GBP 415 million, with margins at least maintained and high single-digit EPS growth supported by buybacks, while Autorama is expected to move to a small profit and be reported as part of one operating segment.

Auto Trader Group Stock Performance

Shares of Auto Trader Group stock opened at GBX 467.30 on Thursday. The company has a current ratio of 1.77, a quick ratio of 1.50 and a debt-to-equity ratio of 10.48. The firm has a market capitalization of £3.81 billion, a P/E ratio of 14.05, a P/E/G ratio of 3.99 and a beta of 0.69. The business has a fifty day simple moving average of GBX 488.77 and a two-hundred day simple moving average of GBX 549.88. Auto Trader Group has a 12 month low of GBX 445.80 and a 12 month high of GBX 920.

Wall Street Analysts Forecast Growth

AUTO has been the subject of several research reports. Citigroup decreased their price objective on shares of Auto Trader Group from GBX 880 to GBX 526 and set a “neutral” rating for the company in a report on Thursday, April 9th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of Auto Trader Group from GBX 850 to GBX 816 and set a “buy” rating on the stock in a research report on Friday, March 27th. UBS Group reissued a “sell” rating and issued a GBX 470 price target on shares of Auto Trader Group in a research note on Monday. Finally, JPMorgan Chase & Co. lowered their price objective on shares of Auto Trader Group from GBX 630 to GBX 515 and set an “underweight” rating for the company in a report on Thursday, March 19th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Auto Trader Group presently has a consensus rating of “Hold” and a consensus target price of GBX 598.40.

Auto Trader Group Company Profile

Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry. Listed on the London Stock Exchange since March 2015, the company is a member of the FTSE 100 Index.

Autotrader’s purpose is Driving Change Together. Responsibly. The company uses advanced data science, artificial intelligence and scalable technology to improve how vehicles are bought and sold, while building stronger partnerships with its customers and the wider automotive ecosystem.