The Carsales.com Ltd (ASX: CAR) share price is surging on Monday following the release of the companyâs financial year 2022 earnings.
Right now, it’s trading at $22.66, representing a 4.67% gain.
Thatâs slightly lower than its opening price of $22.75 which marks a 5% gain on its previous close. Meanwhile, its intraday high of $23.01 represents a seven-month high for the ASX stock.
Carsales share price takes off on full-year earnings
The Carsales share price is surging alongside its full-year revenue, profit, and dividend, as The Motley Fool Australia reported this morning.
The automotive classifieds company posted $509 million of revenue and $161 million of after-tax profit. It also upped its fully franked final dividend to 24.5 cents a share.
It also described a bright future, expecting to deliver âvery strong growthâ in financial year 2023.
That looks to be driven higher by strong trading conditions, its media and investment segments, and its new 100% stake in Trader Interactive.
Carsales CEO Cameron McIntyre said:
We continue to see robust levels of demand in all our key markets, reflecting the strength of our market position and the resilience of marketplace businesses through economic cycles.
This gives us confidence we can continue to deliver great results for our shareholders in financial year 2023.
How are brokers responding?
Not everyone appears thrilled with the companyâs full-year results.
RBCâs Wei-Weng Chen noted the companyâs dividend missed estimate and its capital expenditure was above its normal range, while UBSâs Tom Beadle said its guidance was âvagueâ, The Australian reports.
The company expects its expenditure to normalise this financial year amid strong trading conditions.
Meanwhile, the publication reported that the results didnât surprise Macquarieâs Darren Leung, but its guidance was more positive than the broker predicted.
Finally, JP Morgan’s Don Carducci reportedly commented on an apparent upside on the financial year 2023 consensus.
Todayâs gain sees the Carsales share price 9% lower than at the start of the year. In comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 7% year to date.
The post Carsales share price launches 5% as profit lifts to $161m appeared first on The Motley Fool Australia.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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