OPENLANE (KAR) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates OPENLANE (KAR) will report a year-over-year increase in earnings driven by higher revenues when it releases its quarterly results for the period ending March 2025 [1][2]. Earnings Expectations - OPENLANE is expected to post quarterly earnings of $0.24 per share, reflecting a year-over-year increase of +26.3% [3]. - Revenues are projected to reach $434.11 million, which is a 4.3% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +4.17% suggests that analysts have recently become more optimistic about OPENLANE's earnings prospects [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - OPENLANE currently holds a Zacks Rank of 2, indicating a high likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, OPENLANE met the expected earnings of $0.21 per share, resulting in no surprise [12]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [13]. Industry Comparison - In the automotive industry, Ferrari (RACE) is expected to report earnings of $2.36 per share for the same quarter, representing a year-over-year change of +11.3% [17]. - Ferrari's revenues are anticipated to be $1.85 billion, up 7.3% from the previous year [17].