Editors Note:

If you have ever bought a car part online you probably used this company's services. CDK Global helps retailers manage the online process.


CDK - CDK GLobal - Company Profile

CDK Global, Inc. provides integrated information technology and digital marketing solutions to the automotive retail and other industries worldwide. The company operates through Retail Solutions North America, Advertising North America, and CDK International segments. It offers technology-based solutions, including automotive Website platforms; and advertising solutions comprising the management of digital advertising spend, for original equipment manufacturers and automotive retailers. The company's solutions automate and integrate various parts of the dealership and buying process from targeted digital advertising and marketing campaigns to the sale, financing, insuring, parts supply, repair, and maintenance of vehicles. It provides solutions to dealers serving approximately 27,000 retail locations and automotive manufacturers. Company description from FinViz.com.

The company reported Q3 earnings of 60 cents that beat estimates for 53 cents. Revenue od $550.7 million beat estimates for $540.4 million. Revenue rose 7% and earnings posted a 34% rise. Gross margin rose 590 basis points to 30.9%. They are committed to raise that to 35% over the next year. The company guided for full year earnings of $2.30-$2.37 per share, a rise of 23% to 27%. Advertising revenues rose +23% and earnings on advertising rose +203%.

Earnings February 1st.

Shares are at resistance at $59 and did not decline in today's market. A breakout to a new high appears imminent.

Buy Feb $60 call, currently $2.60, initial stop loss $56.85.


No New Bearish Plays