Why Dealertrack Technologies (TRAK) Stock Is Down Today

NEW YORK (TheStreet) -- Dealertrack Technologies (TRAK) was falling -12.5% to $38.83 Tuesday after missing analysts' expectations for earnings in the first quarter.

For the first quarter Dealertrack reported earnings of 23 cents a share, missing the Capital IQ Consensus Estimate of 30 cents a share by 7 cents. Revenue grew 45.6% from the year-ago quarter to $158.8 million. Analysts expected revenue of $155.7 million for the quarter.

Looking forward to full-year 2014, Dealertrack expects revenue of $814 million to $826 million, up from its previous guidance of $800 million to $816 million.

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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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

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