Auto Trader Group (LON:AUTO) Posts Quarterly Earnings Results

Auto Trader Group (LON:AUTO) issued its 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 for the quarter. Auto Trader Group had a net margin of 47.69% and a return on equity of 51.86%.

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 Down 5.8%

LON AUTO opened at GBX 467.30 on Thursday. Auto Trader Group has a 1 year low of GBX 445.80 and a 1 year high of GBX 920. The stock has a market capitalization of £3.81 billion, a PE ratio of 14.05, a PEG ratio of 3.99 and a beta of 0.69. The company has a debt-to-equity ratio of 10.48, a current ratio of 1.77 and a quick ratio of 1.50. The business’s 50-day moving average is GBX 488.77 and its 200 day moving average is GBX 549.88.

Wall Street Analyst Weigh In

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

About Auto Trader Group

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.