News

Mister Car Wash Stock Drops After Lower Sales Growth

1 Mins read

Shares of Mister Car Wash took a hit as the company’s comparable sales growth fell short in the fourth quarter and a portion of its 2024 forecast was misstated.

Stock Impact

The stock plummeted by 11% to $7.76 during midday trading as these revelations came to light. Despite the drop, shares are still up significantly, showing an increase of over 60% since November.

Sales Growth Concerns

Mister Car Wash reported that its comparable-store sales only increased by 0.7% in the fourth quarter, below the anticipated 1.6% growth projected by analysts. Revenue saw an upturn of 7.4% to $230.1 million, slightly missing the expected $230.4 million.

Revised Forecast

For the year 2024, the company expects comparable-store sales to grow by 0.5% to 2.5%, a range that differs from the analysts’ expected rise of 1.9%. Initially, Mister Car Wash mistakenly stated a forecast with a possible drop of 0.5% in comparable-store sales growth, which was later corrected.

Earnings Outlook

Looking ahead, Mister Car Wash forecasts a full-year revenue ranging from $988 million to $1.016 billion, while analysts predict a revenue of $1.004 billion for 2024. The company expects adjusted per-share earnings to fall between 30 cents and 34 cents, slightly below the analysts’ expected profit of 33 cents a share.

Q4 Financials

In the quarter ending on Dec. 31, Mister Car Wash reported a profit of $12.4 million, or 4 cents per share, compared to $17.8 million, or 5 cents per share, from the previous year. Analysts had anticipated per-share earnings of 6 cents according to FactSet.

Related posts
News

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…
News

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…
News

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published. Required fields are marked *

− 1 = 2