Charlotte, N.C. - Shares of Driven Brands Holdings saw a sharp decline in premarket trading on Wednesday after the automotive services provider reported quarterly earnings that fell short of expectations and reduced its full-year guidance.
In the second quarter, the company recorded adjusted earnings of 29 cents per share, which was below the average expectation of 31 cents according to analysts polled by FactSet.
Despite beating Wall Street's estimate of $587.7 million, with revenue rising by 19% to $606.9 million, Driven Brands stated that underperformance in its car-wash segment and U.S. glass business will result in lower-than-anticipated results for the year.
The previously guided full-year 2023 adjusted profit has been adjusted downwards to 92 cents per share on revenue of $2.3 billion, as opposed to the earlier guidance of $1.21 per share and $2.35 billion in revenue.
FactSet analysts had predicted adjusted earnings of $1.23 per share on an estimated revenue of approximately $2.37 billion for 2023.
In premarket trading, Driven shares experienced a 13% drop from $25.83 to $22.39, following the news.
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