Driven Brands (NASDAQ:DRVN) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Driven Brands (NASDAQ:DRVN) posted its earnings results on Monday. The company reported $0.30 EPS for the quarter, beating the consensus estimate of $0.29 by $0.01, 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 for the quarter, compared to analysts’ expectations of $459.50 million. During the same period last year, the firm earned $0.30 EPS.

Driven Brands Stock Performance

Shares of DRVN opened at $11.00 on Monday. The firm has a market cap of $1.81 billion, a price-to-earnings ratio of -8.87 and a beta of 1.09. The company’s fifty day moving average is $15.57 and its 200-day moving average is $15.77. The company has a quick ratio of 0.80, a current ratio of 0.90 and a debt-to-equity ratio of 2.44. Driven Brands has a 12 month low of $9.80 and a 12 month high of $19.74.

Insider Buying and Selling at Driven Brands

In other Driven Brands news, insider Scott L. O’melia sold 46,875 shares of the company’s stock in a transaction dated Wednesday, January 21st. The shares were sold at an average price of $16.00, for a total transaction of $750,000.00. Following the completion of the sale, the insider directly owned 326,944 shares in the company, valued at $5,231,104. This represents a 12.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 2.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Driven Brands

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

Driven Brands News Summary

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

• Neutral Sentiment: Latest quarterly report showed a small EPS and revenue miss (reported $0.30 EPS vs. $0.32 consensus; revenue $457.3M vs. $459.5M) and a negative net margin — a modest operational miss that alone would be manageable but adds to investor concern amid the restatement.
• Negative Sentiment: The company announced it will restate certain previously issued financial statements and called off its planned earnings release, creating uncertainty about historical results and near‑term guidance. DRIVEN BRANDS HOLDINGS INC. INVESTOR ALERT
• Negative Sentiment: Multiple prominent plaintiff law firms and securities litigators have launched investigations and investor alerts (Faruqi & Faruqi, Robbins Geller, Kirby McInerney, Pomerantz, Glancy Prongay, Rosen, Halper Sadeh, Ademi, others) seeking clients and witnesses — this raises the prospect of litigation, regulatory scrutiny and potential settlement or remediation costs. DRVN SHAREHOLDER ALERT: Faruqi & Faruqi, LLP
• Negative Sentiment: Market reaction has already been severe: the stock experienced a sharp intraday decline after the earnings delay/restatement announcement, reflecting increased investor risk aversion and likely higher volatility going forward. Driven Brands Nosedives After Earnings Delay

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Weiss Ratings restated a “sell (d)” rating on shares of Driven Brands in a research report on Monday, December 29th. BTIG Research reiterated a “buy” rating and set a $21.00 price target on shares of Driven Brands in a report on Thursday, January 8th. William Blair raised Driven Brands from a “market perform” rating to an “outperform” rating in a research note on Wednesday, December 3rd. Zacks Research cut Driven Brands from a “hold” rating to a “strong sell” rating in a research note on Wednesday, January 21st. Finally, Wall Street Zen downgraded Driven Brands from a “buy” rating to a “hold” rating in a report on Saturday, December 13th. Five investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $20.56.

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.