Earnings Alerts

Auto Trader (AUTO) Earnings: FY Revenue Falls Short of Estimates Despite Profit Growth

  • Auto Trader’s full-year revenue reached GBP601.1 million, increasing by 5.3% year-over-year, but missed the estimate of GBP607.8 million.
  • Trade revenue totaled GBP509.1 million, slightly below the forecast of GBP512.4 million.
  • Consumer Services revenue was GBP42.4 million, also below the estimated GBP42.9 million.
  • Manufacturer & Agency revenue came in at GBP13.3 million, missing the expected GBP14.7 million.
  • Pretax profit was recorded at GBP375.7 million.
  • The adjusted EBITDA stood at GBP393.9 million, marginally under the estimated GBP399.9 million.
  • Earnings per share (EPS) was 31.56p, with basic EPS rising to 31.66p from 28.15p in the previous year.
  • Operating profit increased by 8.1% year-over-year to GBP376.8 million.
  • The operating margin rose to 63%, compared to 61% the previous year, but was slightly under the estimate of 64.2%.
  • The final dividend per share increased to 7.1p from 6.4p last year, making the total dividend per share 10.6p.
  • The company anticipates stronger growth in the second half of fiscal year 2026.
  • Retailer revenue growth is expected to increase between 5-7% in fiscal year 2026.
  • Auto Trader foresees an increase in overall new car registration volumes, influenced by the UK/US trade deal and adjustments to the UK’s Zero Emission Vehicle mandate.
  • Stock levels are expected to improve but remain slightly down for fiscal year 2026.
  • The company has 8 buy recommendations, 5 hold recommendations, and 4 sell recommendations from analysts.

Auto Trader on Smartkarma

Analysts at Baptista Research have recently published a bullish research report on Auto Trader Group on Smartkarma. The report, titled Auto Trader Group: Initiation of Coverage- 6 Major Game-Changers Impacting Its 2025 Performance & Beyond!, delves into the company’s half-year results for the period ending September 30, 2024. The analysis highlights a blend of strong performance metrics alongside some notable challenges.

Auto Trader Group achieved record levels of platform engagement during the period, outperforming its closest competitors in consumer involvement. The report also praises the company’s progress in monetizing its Deal Builder product. However, hurdles in converting market engagement into higher stock levels have impacted the overall revenue performance, as outlined by Baptista Research in their insightful analysis.


A look at Auto Trader Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience4
Momentum4
OVERALL SMART SCORE3.2

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Auto Trader Group PLC, a digital automotive marketplace, seems to have a promising long-term outlook based on Smartkarma Smart Scores. With solid scores in Growth, Resilience, and Momentum, the company appears to be well-positioned for future success. The Growth score of 4 suggests that Auto Trader is expected to experience strong expansion opportunities. Additionally, a Resilience score of 4 indicates the company’s ability to withstand economic downturns and market challenges. Coupled with a Momentum score of 4, which signifies positive market momentum, Auto Trader may continue to demonstrate robust performance in the coming years.

While Value and Dividend scores are slightly lower at 2, the overall outlook for Auto Trader remains optimistic. The company’s focus on digital automotive solutions aligns with the increasingly digitized marketplace, presenting opportunities for growth and innovation. As Auto Trader‘s platform facilitates the buying and selling of various vehicles, including cars, trucks, and vans, its digital presence and marketplace offerings position it well for sustained success in the evolving automotive industry.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.


 

💡 Before it’s here, it’s on Smartkarma

Sign Up for Free

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network

  • ✓ Unlimited Research Summaries
  • ✓ Personalised Alerts
  • ✓ Custom Watchlists
  • ✓ Company Analytics and News
  • ✓ Events & Webinars