CDK Global Drops As Quarterly Results Fall Short Of Consensus

Shares of software and technology solutions provider for automotive retailers, CDK Global, Inc. (CDK) are down more than 8% Wednesday morning after the company’s second quarter results missed view.

Net income for the second quarter increased to $49.4 million or $0.40 per share from $45.6 million or $0.37 per share in the same quarter a year ago.

Excluding items, earnings were $0.66.

Revenue for the quarter increased 12% year-over-year at $420.1 million.

On average 4 analysts polled by Thomson Reuters expected the company to report earnings of $0.67 per share on revenue of $427.66 million for the quarter.

Looking forward, full-year revenue is expected between $1.78 billion and $1.82 billion and adjusted EPS is expected in the range of $2.70 – $2.90. The consensus estimate for revenue is at $1.68 billion and for earnings is at $2.57 per share.

CDK touched a new low of $40.01 this morning, brefore edging up to $41.77 currently.

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