LAKE SUCCESS, N.Y. – Automotive dealer software manufacturer DealerTrack Holdings Inc. slashed its full-year earnings and revenue projections Monday, saying a challenging credit environment and slowdown in new car sales would impede performance.
Its shares tumbled 16 percent in after-hours trading, shedding $2.54 to $13.25 after closing the regular session down 21 cents at $15.79.
The Lake Success-based company said it expects to earn between $9.4 million and $12.8 million in 2008. That would be earnings per share of between 22 cents and 30 cents.
The company previously expected to earn between $21 million and $22.6 million, or 48 cents to 52 cents per share.
DealerTrack executives said they expected revenue of $246 million to $253 million — down from earlier estimates of $268 million to 272 million.
Analysts surveyed by Thomson Financial expect the company to earn 98 cents per share on revenue of $260 million for the year.
“We continue to expand our product offerings and to invest in our existing products,” DealerTrack Chairman and Chief Executive Mark O’Neil said in a statement. “We believe we can continue to grow through this economic downturn. It would be shortsighted of us to stop development of new projects; instead, we remain focused on growing DealerTrack by providing our customers with the solutions they need to be more efficient.”
The company said its new outlook doesn’t assume a recovery in the nation’s auto lending environment this year.
Separately Monday, DealerTrack said its second-quarter profit fell 51 percent to $3.06 million, or 7 cents per share, in the quarter ending June 30. That’s down from $6.28 million, or 15 cents a share, during the same period last year.