Driven Brands ( NASDAQ: DRVN ) stock slid sharply on Wednesday despite beating earnings expectations and raising profit forecasts.
The North Carolina-based auto service group posted a largely positive earnings report , which reflected above consensus EPS, revenue, and same store sales. Additionally, management raised full year EPS estimates to $1.21, up from a prior expectation of about $1.17.
However, significant deceleration in car wash sales appeared to muddy the otherwise clean earnings results.
The segment saw a 9% decrease in same store sales, well below the expectation of just under a 1% comparable sales increase from 2021.
“We expect trends within the U.S. Car Wash business to be in focus given investor concerns on the resiliency of this business in a recession,” Baird analyst Peter Benedict commented.
Shares of the Meineke Car Care-parent slid over 6% at an intraday low, sustaining a drop near that level into afternoon trading on earnings day.
Read more on the details of the results .
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Driven Brands shares dive on car wash concerns