Car wash company Driven Brands rallies in premarket trades on stronger-than-expected revenue and adjusted profit

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Steve Gelsi covers banking and cannabis as a Senior Reporter for MarketWatch.

Driven Brands Holdings Inc.’s stock DRVN, +2.06% was up by 11.6% in premarket trades on Wednesday after the car wash operator’s adjusted third-quarter profit and revenue beat analyst expectations. Driven Brands said it lost $799.3 million, or $4.83 a share in its third quarter, while in the year-ago period it reported net income of $38.4 million, or 23 cents a share.

Adjusted net income of 20 cents a share in the latest quarter beat the FactSet consensus estimate of 18 cents a share. Third-quarter revenue at the Charlotte, N.C. company rose to $581 million from $516 million in the year-ago quarter, ahead of the analysts’ consensus view of $568.4 million. Looking ahead, Driven Brands expects adjusted 2023 profit of 92 cents a share and revenue of $2.3 billion, both in-line with analyst expectations.

 

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