WESTCHESTER, Ill. - RB Global, Inc. (NYSE: RBA), a leading omnichannel marketplace for commercial assets and vehicles, reported a robust fourth quarter with earnings surpassing analyst expectations. The company announced an adjusted EPS of $0.82, which outperformed the consensus estimate of $0.70. However, revenue for the quarter was in line with expectations, coming in at $1.04 billion.
The company's stock price responded positively to the earnings report, with a modest increase of 1%. The EPS beat is the primary driver behind the stock's movement, signaling investor confidence in RB Global's financial performance.
In the fourth quarter, RB Global experienced a significant year-over-year (YoY) growth across various sectors. Gross transaction value (GTV) soared by 160% to $4.0 billion, largely attributed to the acquisition of IAA, Inc. ("IAA"). The integration of IAA contributed $2.2 billion to the GTV. Total revenue saw a 134% YoY increase, which includes $559.2 million from IAA's impact. Service revenue also witnessed a substantial rise of 197% YoY to $809.1 million, with IAA contributing $488.0 million.
Net income available to common stockholders climbed by 65% YoY to $74.8 million, and diluted earnings per share (EPS) available to common stockholders increased by 2% to $0.41 per share. Adjusted EBITDA reflected a significant uptick of 153% YoY to $307.5 million.
CEO Jim Kessler expressed pride in the company's solid GTV growth and operational improvements, especially in the automotive sector. CFO Eric J. Guerin highlighted the strong financial performance and notable reduction in leverage, underscoring the company's strategic execution.
Looking ahead, RB Global provided its financial outlook for the full year 2024, projecting GTV growth between 1% and 4%. The company anticipates adjusted EBITDA to range from $1,170 million to $1,230 million. The expected capital expenditures are estimated to be between $275 million and $325 million. The guidance did not include a reconciliation to GAAP net income due to the unpredictable nature of non-GAAP adjustments.
RB Global's strategic acquisitions, particularly of IAA, have significantly bolstered its financial standing and market position. As the company continues to focus on operational excellence and growth, it remains a prominent player in the global marketplace for commercial assets and vehicles.
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