On Friday, Deutsche Bank (ETR:DBKGn) increased the price target for Auto Trader Group PLC (AUTO:LN) (OTC: ATDRY) shares to £9.49 from £9.10, while reaffirming a Buy rating on the stock.
The adjustment follows Auto Trader's announcement of robust financial results for the fiscal year 2024, which surpassed expectations on several key metrics.
The company reported a 14% rise in group revenue, reaching £570.9 million, outperforming Deutsche Bank's projection of £558.3 million and the consensus estimate of £556.5 million.
Adjusted EBITDA was also higher than anticipated at £375.3 million, compared to Deutsche Bank's forecast of £362.3 million and the consensus of £361.8 million.
Operational profit, after accounting for deferred payment and acquired intangible amortisation, stood at £348.7 million. This figure exceeded both Deutsche Bank's estimate of £335.4 million and the consensus figure of £335.6 million.
Additionally, Auto Trader's adjusted diluted earnings per share (EPS), before acquired intangible amortisation, was 29.8p, which is above Deutsche Bank's expectation of 28.9p.
The company declared a dividend of 9.6p for the year, which is slightly higher than Deutsche Bank's prediction of 9.2p and the consensus of 9.13p.
In total, Auto Trader returned £250.3 million to its shareholders over the year, including £169.9 million through buybacks and £80.4 million in dividends. These financial achievements underscore Auto Trader's strong performance and operational efficiency during the fiscal year.
InvestingPro Insights
Building on the positive outlook from Deutsche Bank, InvestingPro data further highlights Auto Trader Group PLC's (ATDRY) financial strength and market position. The company boasts a robust market capitalization of $9.27 billion, reflecting investor confidence and the scale of its operations. With a P/E ratio of 31.8 and an adjusted P/E ratio for the last twelve months as of Q2 2024 at 29.46, Auto Trader is trading at a high earnings multiple, which may suggest high expectations for future earnings growth from the market participants.
Auto Trader's revenue growth continues to impress, with a 13.66% increase over the last twelve months as of Q2 2024, indicating a solid trajectory in sales. Additionally, the company's gross profit margin stands at a remarkable 79.3%, showcasing its ability to manage costs effectively and maintain profitability.
InvestingPro Tips highlight that Auto Trader has raised its dividend for 4 consecutive years, demonstrating its commitment to providing shareholder value. Moreover, the company's recent performance has led to significant returns, with a 12.02% price total return over the last week. For investors seeking more in-depth analysis and additional tips, InvestingPro offers 16 more insights on Auto Trader Group PLC, which can be accessed with the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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