The company says the road is smoother further down.
The post Carsales (ASX:CAR) share price falls despite optimistic outlook appeared first on The Motley Fool Australia. –
At the time of writing, shares in the online vehicle retailer are trading for $25.04 – down 1.49%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.1% higher.
Let’s take a closer look.
What happened at the Carsales AGM?
Carsales revealed its outlook for FY22 in its presentation to shareholders. While the outlook was largely positive, investors don’t seem too revved up by it, judging by the falling Carsales share price.
The company said the following:
Q1 of FY22 was tough for the company. Lockdowns in Australia’s two largest states had a material impact on car sales and listings. Since New South Wales and Victoria have opened up, however, sales are up.
Carsales expects to deliver “strong” growth in Group Adjusted revenue, “solid” growth in Group Adjusted EBITDA and strong growth in Group Adjusted NPAT. The company said its financial performance will be more overly weighted to the second half of the financial year, due to the negative impacts of lockdowns.
Outside of NSW and Victoria, car sales growth remained “solid” among established dealers and private listings.
Core expenses are expected to increase with the end of JobKeeper.
Finally, looking at its overseas businesses, Carsales expects strong growth in revenue and EBITDA across Brazil, the United States, and Korea.
Carsales FY21 results
When Carsales released its FY21 results, the Carsales share price increased.
At the time, and as it restated today, Carsales reported revenue up 4%, EBITDA up 10%, and adjusted NPAT up 11%. The company did declare a 10% lower dividend of 22.5 cents per share.
For the 12 months ended 30 June, Carsales delivered double-digit growth across its adjusted EBITDA and net profit metrics. This was broadly in line with the market’s expectations.
When the results were released, management said this reflected a resilient revenue performance driven by a strong performance from its international businesses, modest growth in the Australian business, and strong margin performance. The latter was apparently driven by cost management initiatives.
Carsales share price snapshot
Over the past 12 months, the Carsales share price has increased 17.4%. Year-to-date, shares in the company have increased 25.7%. Its 52-week high is $26.67 and its 52-week low is $16.72.
Carsales.com has an approximate market capitalisation of $7.1 billion.
The post Carsales (ASX:CAR) share price falls despite optimistic outlook appeared first on The Motley Fool Australia.
Should you invest $1,000 in Carsales right now?
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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.