KAR misses quarterly profit forecast amid surge in revenue

KAR Auction Services Inc. missed Wall Street expectations with its fourth-quarter earnings despite revenue that exceeded predictions.

The Carmel-based used and salvaged vehicle auctioneer on Tuesday reported fourth-quarter profit of $45.5 million, or 33 cents per share. That was down from $48.3 million, or 35 cents per share, in the same quarter of 2015.

Earnings, adjusted for one-time gains and costs, were reported at 45 cents per share, missing the forecast of 48 cents by six analysts surveyed by Zacks Investment.

KAR’s revenue of $813.7 million in the period topped the $695.7 million in revenue from the year-ago period and was better than the $782.5 million predicted by analysts.

For the year, the company reported profit of $222.4 million, or $1.60 per share. Revenue was reported as $3.15 billion.

KAR Auction Services said it expects full-year earnings in the range of $2.15 to $2.25 per share.

The company said it repurchased about 1.9 million shares of common stock in the open market for $80.4 million in the fourth quarter.

It announced a cash dividend of 32 cents per share, payable on April 4, to stockholders of record as of March 22.

KAR shares closed at $46.69 each Tuesday prior to the earnings announcement. The stock is up 9.5 percent since the beginning of the year and 41 percent over the last 12 months.