As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the asset management & auction services industry, including OPENLANE (NYSE: KAR) and its peers.
Like in other industries, the shift to online platforms can lower transaction costs and improve liquidity for sellers. Increasing digitization, AI-driven pricing analytics, and automation in logistics can enhance efficiency for operators who invest in technology and software. On the other hand, challenges include potential regulatory scrutiny on auction transparency, data privacy concerns with AI-driven valuation models, and shifting environmental policies that could impact the resale market for internal combustion vehicles. Additionally, supply chain volatility in new car production may create unpredictable swings in used vehicle supply, impacting auction volumes.
The 4 asset management & auction services stocks we track reported an exceptional Q4. As a group, revenues beat analysts’ consensus estimates by 9.1%.
While some asset management & auction services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.
Slowest Q4: OPENLANE (NYSE: KAR)
Facilitating the sale of approximately 1.3 million used vehicles in 2023, OPENLANE (NYSE: KAR) operates digital marketplaces that connect sellers and buyers of used vehicles across North America and Europe, facilitating wholesale transactions.
OPENLANE reported revenues of $455 million, up 12% year on year. This print exceeded analysts’ expectations by 8.2%. Overall, it was a satisfactory quarter for the company with a decent beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.
The stock is up 6% since reporting and currently trades at $21.25.
Is now the time to buy OPENLANE? Access our full analysis of the earnings results here, it’s free.
Best Q4: Liquidity Services (NASDAQ: LQDT)
Powering what it calls the "circular economy" with over 5.5 million registered buyers across its platforms, Liquidity Services (NASDAQ: LQDT) operates online marketplaces that connect buyers and sellers of surplus assets, from consumer returns to industrial equipment to government property.
Liquidity Services reported revenues of $122.3 million, up 71.5% year on year, outperforming analysts’ expectations by 16.1%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates.
Liquidity Services scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 7% since reporting. It currently trades at $30.47.
Is now the time to buy Liquidity Services? Access our full analysis of the earnings results here, it’s free.
Copart (NASDAQ: CPRT)
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Copart reported revenues of $1.16 billion, up 14% year on year, exceeding analysts’ expectations by 4.2%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a decent beat of analysts’ EPS estimates.
Copart delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 7.3% since the results and currently trades at $53.90.
Read our full analysis of Copart’s results here.
RB Global (NYSE: RBA)
Born from the 1958 founding of Ritchie Bros. Auctioneers and rebranded in 2023, RB Global (NYSE: RBA) operates global marketplaces that connect buyers and sellers of commercial assets, vehicles, and equipment across multiple industries.
RB Global reported revenues of $1.14 billion, up 9.7% year on year. This result surpassed analysts’ expectations by 7.9%. It was an incredible quarter as it also put up an impressive beat of analysts’ EPS estimates.
RB Global had the slowest revenue growth among its peers. The stock is up 2.8% since reporting and currently trades at $99.23.
Read our full, actionable report on RB Global here, it’s free.
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