Automotive services company Driven Brands (NASDAQ:DRVN) will be announcing earnings results this Tuesday before market open. Here’s what investors should know.
Driven Brands beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $516.2 million, up 7.1% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year revenue guidance meeting analysts’ expectations.
Is Driven Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Driven Brands’s revenue to decline 11.6% year on year to $540.8 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.34 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Driven Brands has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Driven Brands’s peers in the industrial & environmental services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 34.8%, beating analysts’ expectations by 3.5%, and UniFirst reported revenues up 1.2%, falling short of estimates by 0.6%. CECO Environmental traded up 25.5% following the results while UniFirst was down 8.1%.
Read our full analysis of CECO Environmental’s results here and UniFirst’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the industrial & environmental services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.4% on average over the last month. Driven Brands is down 5.9% during the same time and is heading into earnings with an average analyst price target of $21.31 (compared to the current share price of $16.71).
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