Q3 Earnings Preview for IAA (IAA)

in EARNINGS/INVESTING IDEAS by

IAA, Inc. (NYSE:IAA) is scheduled to report Q3 earnings results on November 12, 2019. The company is expected to report earnings of $0.33/share on revenue of $347.3 million. The consensus earnings per share (EPS) of $0.33/share is based on a poll of 10 analysts.

The revenue forecast of $347.3 million based on a poll of 9 analysts.

Earnings Call Trends

Management beat analyst expectations last quarter, the first time the company reported earnings after IPO. The company is down over 15% since the IPO at the end of July. After the last earnings report for the period ending June 30, 2019, the stock price reacted by increasing by 4.2%.

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 $0.38 $0.44 15.8% Beat

What are your expectations from IAA for this earnings this quarter? Let us know in the comments!

Fundamentals And Technical Analysis

IAA is currently trading at $38.90/share, up 1.7% for the day. The company is trading at approximately 77.9% of its 52 week high of $49.96/share. The company’s stock price is down -10.7% since the last earnings report and down -1.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 39.96 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The current share price implies a price-to-earnings (P/E) multiple of 26.7x and a forward P/E multiple of 24.0x. IAA’s current share price also implies a price-to-book (P/B) multiple of -22.3x. The following table summarizes some other key fundamental ratios:

Data as of November 11, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $38.90
P/E Ratio 26.7x
P/E Ratio (Fwd) 24.0x
PEG Ratio 3.1
Total Debt to Capital (%) 28.1%
Levered Free Cash Flow $209.1 million
Enterprise Value / EBITDA 17.7x

Company Profile: IAA, Inc.

IAA, Inc. is a mid-cap stock with a market capitalization of $5.192 billion and a total enterprise value of $7.138 billion. The company operates in the Industrials sector and Commercial Services & Supplies industry.

IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company’s salvage auctions facilitate the re-marketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions.

As of September 19, 2019, it operated approximately 190 facilities in the United States, Canada, and the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois.

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