Shares of Australia-based classifieds platform and online marketplace CAR Group (AU:CAR) surged by 4.5% today after the company released a strong set of results for FY24. The company reported a 41% year-over-year growth in its adjusted revenue of AU$1.1 billion. Meanwhile, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 37% to AU$581 million.
CAR Group is a digital marketplace for buying and selling vehicles with global operations. Year-to-date, CAR stock has gained 12% in trading.
CAR Group’s FY24 Results: Another Year of Success
CAR Group’s success in FY24 was well-supported by its performance across all major regions. The company stated that its numbers highlight the resilience of its business model amid a challenging environment.
The company’s adjusted NPAT (net profit after tax) increased 24% year-over-year to AU$344 million. However, reported NPAT declined to AU$250 million from AU$646 million in FY23, as the prior year included an AU$487 million gain from the acquisitions of Trader Interactive and Webmotors.
Among CAR Group’s regions, revenue and adjusted earnings both grew by 13% in Australia, driven by the strength in the used-car market. Further, Asia recorded revenue growth of 15% and earnings growth of 11% on a constant currency basis.
Speaking of Latin America, proforma revenue and EBITDA grew by 25% and 34%, respectively, on a constant currency basis. This demonstrates the effective implementation of Webmotors’ national expansion strategy and enhanced market reach.
CAR Group’s Higher Dividends
CAR Group declared a final dividend of 38.5 cents per share, marking an increase of 18% over the prior corresponding period. This brings the total dividends for FY24 to 73.0 cents per share, which is 20% above the previous year’s payment.
Moving forward, CAR Group expects to continue its momentum and deliver “good growth” in its revenue, adjusted EBITDA, and adjusted NPAT on a constant currency basis.
Is CAR Group Stock a Good Buy?
According to TipRanks’ rating consensus, CAR stock has received a Moderate Buy rating based on eight recommendations from analysts, including five Buys. The CAR Group share price target is AU$36.38, which is 3.4% above the current price level.
