Uncovering Potential: Driven Brands Hldgs's Earnings Preview

Driven Brands Hldgs DRVN is gearing up to announce its quarterly earnings on Thursday, 2024-10-31. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Driven Brands Hldgs will report an earnings per share (EPS) of $0.22.

The market awaits Driven Brands Hldgs's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.07, leading to a 6.48% drop in the share price the following trading session.

Here's a look at Driven Brands Hldgs's past performance and the resulting price change:

Analysts' Take on Driven Brands Hldgs

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Driven Brands Hldgs.

The consensus rating for Driven Brands Hldgs is Outperform, derived from 6 analyst ratings. An average one-year price target of $17.83 implies a potential 26.45% upside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of VSE, Vestis and Openlane, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• For VSE, analysts project an Buy trajectory, with an average 1-year price target of $107.5, indicating a potential 662.41% upside.
• Analysts currently favor an Neutral trajectory for Vestis, with an average 1-year price target of $13.1, suggesting a potential 7.09% downside.
• The consensus among analysts is an Outperform trajectory for Openlane, with an average 1-year price target of $25.0, indicating a potential 77.3% upside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for VSE, Vestis and Openlane, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

Driven Brands Hldgs ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Driven Brands Hldgs is positioned favorably compared to its peers in terms of revenue growth and gross profit, but lags behind in return on equity.

All You Need to Know About Driven Brands Hldgs

Driven Brands Holdings Inc is an automotive services company in North America. Its platform provides high-quality services to an extensive range of retail and commercial customers. The company provides an extensive range of core consumer and commercial automotive needs, including paint, collision, glass, and repair services, as well as a variety of high-frequency services, such as oil changes and car washes.

Breaking Down Driven Brands Hldgs's Financial Performance

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Driven Brands Hldgs's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2024, the company achieved a revenue growth rate of approximately 0.78%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 4.93%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Driven Brands Hldgs's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.26%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Driven Brands Hldgs's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.51%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 4.46, caution is advised due to increased financial risk.

To track all earnings releases for Driven Brands Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.