Why DealerTrack Technologies (TRAK) Stock Is Up in After-Hours Trading Monday

NEW YORK (TheStreet) -- DealerTrack Technologies (TRAK) was gaining 12% to $43.75 after-hours Monday after beating analysts’ estimates for earnings and revenue in the second quarter.

For the second quarter DealerTrack reported earnings of 41 cents a share, beating the Capital IQ Consensus Estimates of 37 cents a share by 4 cents. Revenue grew 84.6% from the year-ago quarter to $224.8 million. Analysts expected revenue of $213.45 million for the quarter.

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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 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."

TRAK ChartTRAK 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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