KAR Auction Services Q3 Results Top Estimates; Boosts FY14 Earnings Outlook

(RTTNews) - KAR Auction Services, Inc. (KAR) reported net income for the third quarter of $47.5 million or $0.33 per share, compared to $22.8 million or $0.16 per share for the year-ago quarter.

Excluding items, adjusted net income per share for the third quarter increased 38% to $0.40 from $0.29 in the prior year quarter.

Third quarter revenue rose 10% to $589.1 million from $533.7 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.31 per share on revenue of $564.09 million for the third quarter. Analysts' estimates typically exclude special items.

The company also said that its Board of Directors has authorized the repurchase of up to $300 million of shares of the company's common stock as well as a cash dividend of $0.27 per share on the company's common stock. The dividend is payable on January 7, 2015, to stockholders of record on December 29, 2014.

For the full year 2014, the company now expects earnings of $1.05 to $1.15 per share and adjusted earnings of $1.45 to $1.55 per share. Previously, the company expected earnings of $0.95 to $1.05 per share and adjusted earnings of $1.35 to $1.45 per share. Analysts currently expect full-year earnings of $1.44 per share.