Automotive services company Driven Brands (NASDAQ: DRVN) will be announcing earnings results this Tuesday before the bell. Here’s what to look for.
Driven Brands beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $551 million, up 6.2% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a miss of analysts’ full-year EPS guidance estimates.
Is Driven Brands a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Driven Brands’s revenue to decline 9.1% year on year to $537.7 million, a reversal from the 1.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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 five times over the last two years.
Looking at Driven Brands’s peers in the industrial & environmental services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CECO Environmental delivered year-on-year revenue growth of 45.8%, beating analysts’ expectations by 3.6%, and UniFirst reported a revenue decline of 4%, topping estimates by 1.1%. CECO Environmental traded down 9.8% following the results while UniFirst was also down 10.2%.
Read our full analysis of CECO Environmental’s results here and UniFirst’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty 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 2.9% on average over the last month. Driven Brands is down 7% during the same time and is heading into earnings with an average analyst price target of $21.69 (compared to the current share price of $14.25).
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