Shares of automotive services provider Driven Brands Holdings (NASDAQ:DRVN) are plummeting today after it slashed its financial outlook amid a challenging macro environment.
DRVN’s second-quarter revenue rose by 19.3% year-over-year to $606.8 million, outperforming estimates by about $19 million. EPS at $0.29, on the other hand, missed the cut by $0.02. During the quarter, DRVN added 74 new locations and saw its same-store sales rise by 8% driven by double-digit gains in maintenance and paint, collision, and glass segments.
At the same time, softer consumer demand impacted the company’s car wash segment while its U.S. glass operations were impacted by integration bottlenecks. The company expects these challenges to impact its full-year performance and consequently has lowered revenue expectations for the year to $2.30 billion from $2.35 billion. Further, EPS for the year is now seen landing at $0.92 versus an earlier outlook of $1.21.
Overall, the Street has a $38 consensus price target on DRVN alongside a Strong Buy consensus rating. With today’s price erosion, shares of the company have now tanked nearly 52% over the past year.
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