Shares of car-wash chain Mister Car Wash (MCW) rose by 2.10% during the trading day on Thursday, but fell by 4.1% after hours when the company released their full-year outlook which was below market expectations. The chain, which operates more than 425 car washes in the United States, forecasted net sales of between $925 million and $960 million, which was lower than the FactSet consensus of $956.7 million. The company also forecasted 2023 adjusted earnings per share of between 30 cents and 35 cents, and same-store sales growth of flat to 3%. These figures were also below the Wall Street estimates of 38 cents and 3.3% growth, respectively.
Mister Car Wash executives attributed the lower-than-expected guidance to more difficult year-over-year comparisons, particularly in the first half of the year. However, the company’s fourth-quarter results beat expectations. During the fourth quarter, the company reported net income of $17.8 million, or five cents a share, compared with $36.3 million, or 11 cents a share, in the same quarter in 2021. Sales of $214.3 million were up 12% from $191.5 million in the fourth quarter in 2021. Same-store sales rose 4%. Adjusted for losses on asset sales, stock-based compensation and other expenses, Mister Car Wash earned eight cents a share, the same as in the fourth quarter of 2021. Analysts polled by FactSet expected adjusted earnings per share of six cents, on revenue of $214.2 million, with same-store sales growth of 2.9%.
Despite the fourth-quarter results being better than expected, investors were still concerned about the company’s full-year outlook. Mister Car Wash’s stock dropped by 4.1% after hours as investors reacted to the lower-than-expected guidance. The company’s outlook for the first half of the year was particularly concerning, as executives expected same-store sales to be lower due to more difficult year-over-year comparisons.
Mister Car Wash is one of the largest car-wash chains in the United States, and their outlook for the next year will have a significant impact on the industry as a whole. Investors will be closely monitoring the company’s performance in the coming months to see if the company can meet its own expectations. If the company is able to meet or exceed their guidance, it could be a positive sign for the industry as a whole. However, if the company fails to meet its expectations, it could have a negative impact on the industry.
Overall, Mister Car Wash’s fourth-quarter results were better than expected, but the company’s full-year outlook was below market expectations. Investors reacted to the lower-than-expected guidance by selling off the stock, and they will be closely monitoring the company’s performance in the coming months to see if they can meet their own expectations. The company’s performance in the next year will have a significant impact on the industry as a whole, and investors will be watching closely.
