Carsales.com (CRZ): A slow down in revenue and earnings growth does not suggest the business model is broken. First half NPAT of $46.7 million was below...

Carsales.com (CRZ): A slow down in revenue and earnings growth does not suggest the business model is broken. First half NPAT of $46.7 million was below Morgans' estimate of $51.9m and consensus ($51.5m). While one-off costs may have had some impact on the result, it was the slowing in revenue growth that contributed most to the shortfall on market expectations.The slowdown in revenue and earnings growth was not a surprise and, in our opinion, does not suggest that Carsales business model is broken. In fact Carsales continues to increase its position of competitive strength and eventually will be able to increase prices again, if not in late 2015 then certainly in 2016. In our view today's share price pull-back has re-calibrated market expectations and made the stock a more attractive long term investment proposition. Read more of Morgan's reporting season commentary on AAD, AAX, BGA, CMW. (VIEW LINK)


MORE ON



The Livewire Equities feed brings you a range of insights that relate to Australian equities

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.