2023-08-02 10:02:03 ET
Driven Brands Holdings ( NASDAQ: DRVN ) fell sharply in early trading on Wednesday after setting guidance below expectations.
The company pointed to a faltering performance for the Car Wash segment, which has been impacted by softer consumer demand. The U.S. glass business was also noted to be negatively impacted by integration delays.
The company guided for full-year revenue of $2.30B vs. $2.35B prior and $2.37B consensus. DRVN also sees adjusted EPS of $0.92 vs. $1.21 prior estimate and the consensus mark of $1.23. Adjusted EBITDA of $535M is anticipated for the full year vs. $590M prior estimate.
On Wall Street, William Blair downgraded DRVN to a Market Perform rating from Outperform. Analyst Sharon Zackfia said the earnings visibility on the company is now clouded.
While Wall Street analysts has consenus Buy rating on the stock into the earnings report, the Seeking Alpha Quant Rating was flashing Sell.
Shares of Driven Brands plummeted 37.55% in morning action to a new all-time low of $16.05.
More on Driven Brands:
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- Seeking Alpha's Quant Rating for Driven Brands
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Driven Brands plummets after slashing guidance