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Why Dealertrack Technologies (TRAK) Stock Is Soaring Today

Stocks in this article: TRAK

NEW YORK (TheStreet) -- Dealertrack Technologies  (TRAK) soared Tuesday after the software company reported second-quarter earnings that surpassed analysts' expectations.

The company, which makes on-demand software for the auto industry, reported adjusted earnings of 41 cents a share. up from 37 cents in the same period one year earlier. Revenue soared 84.6% year-over-year to $224.8 million. The Capital IQ Consensus Estimate called for 37 cents a share on revenue of $213.45 million.

Dealertrack also issued full-year EPS and revenue guidance. The company expects EPS in the range of $1.47 to $1.56, up from its previous guidance of $1.42 to $1.53, on revenue in the range of $829 million to $843 million, up from previous guidance in the range of $814 million to $826 million. The consensus estimate calls for EPS of $1.48 on revenue of $819.34 million.

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The stock was up 18.32% to $46.24 at 12:09 p.m. More than 1.4 million shares had changed hands, compared to the average volume of 619,158.

Separately, TheStreet Ratings team rates DEALERTRACK TECHNOLOGIES INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate DEALERTRACK TECHNOLOGIES INC (TRAK) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

You can view the full analysis from the report here: TRAK Ratings Report TRAK Chart TRAK data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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