KAR Auction Withdraws FY21 Guidance As Chip Shortage Bites

Wholesale used vehicle digital marketplace KAR Auction Services Inc KAR has withdrawn its previously provided financial outlook for fiscal 2021, citing continued disruption caused by the chip shortage and the lack of visibility into used vehicle volumes in its marketplaces.
The company expects Q3 Adjusted EBITDA of $95 million - $100 million.
KAR projects 2.6 million vehicles sold in FY21.
KAR also does not intend to provide Q4 expectations at this time due to the market uncertainty.
Price Action: KAR shares closed lower by 2.42% at $15.73 on Monday.