CHARLOTTE, N.C. - Driven Brands Holdings Inc. (NASDAQ: DRVN), a leading automotive services company, reported its first quarter financial results, which included an earnings per share (EPS) that surpassed analyst expectations but fell short on revenue forecasts.
The company reported an EPS of $0.23, which was $0.03 higher than the analyst estimate of $0.20. However, revenue for the quarter was $572.23 million, missing the consensus estimate of $584.6 million.
The company's stock fell 2% in premarket trading. Driven Brands' revenue for the first quarter marked a 2% increase compared to the same period last year, with system-wide sales climbing 7% primarily due to a 0.7% growth in same-store sales and the addition of 144 net new units.
Despite the revenue miss, Driven Brands achieved its 13th consecutive quarter of same-store sales growth, with the Maintenance segment showing a robust performance, particularly from Take 5 Oil Change, which experienced a 7% increase in same-store sales.
Jonathan Fitzpatrick, President and Chief Executive Officer, commented on the results, "We are pleased with our strong performance in the first quarter of 2024. The Maintenance segment once again delivered exceptional results, largely driven by Take 5 Oil Change. We increased total company revenue, managed expenses and achieved our 13th consecutive quarter of same-store sales growth."
Looking forward, Driven Brands remains confident in its full-year outlook for fiscal year 2024, projecting an EPS range of $0.88 to $1.00 and revenue expectations between $2.35 billion and $2.45 billion. These projections align closely with analyst consensus estimates of an EPS of $0.95 and revenue of $2.43 billion.
The company also announced a CFO transition, with Gary W. Ferrera stepping down to pursue another professional opportunity. Joel Arnao, Senior Vice President of FP&A, Treasury, and Investor Relations, will serve as interim CFO, ensuring a smooth transition.
Driven Brands' reaffirmed fiscal year 2024 outlook and its continuous growth in same-store sales reflect the company's resilience and strategic focus on expanding its services and market presence.
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