Why Endeavor Group Stock Is Sliding After Hours

Endeavor Group Holdings Inc EDR shares are trading lower in Thursday's after-hours session after the company reported financial results and announced that its subsidiary, IMG, acquired a majority stake in Barrett-Jackson. 

Endeavor Group reported second-quarter revenue of $1.313 billion, which beat average analyst estimates of $1.22 billion, according to Benzinga Pro. The company reported net income of $42.2 million and adjusted EBITDA of $306.4 million in the second quarter. 

"We benefited from strong growth globally across our segments in the second quarter," said Ariel Emanuel, CEO of Endeavor Group.

Full-year revenue is expected to be between $5.235 billion and $5.475 billion versus average analyst estimates of $5.39 billion. Endeavor also raised its full-year adjusted EBITDA forecast to a range of $1.13 billion to $1.17 billion.

Endeavor subsidiary IMG, which owns, operates and commercially represents hundreds of events around the world, will serve as a strategic partner to Barrett-Jackson. 

"Like IMG, Barrett-Jackson is a pioneer of its industry, and we look forward to working with Craig and his team to build on its impressive legacy across categories including experiences, hospitality, content, marketing and partnerships," Emanuel said.

See Also: Toast Shares Soar On Q2 Performance, Raised FY22 Guidance

EDR Price Action: Endeavor has a 52-week high of $35.28 and a 52-week low of $17.42.

The stock was down 3.69% in after-hours at $22.98 at press time.

Photo: Jordan Staub from Flickr.EDR