Automotive services company Driven Brands (NASDAQ:DRVN) beat Wall Street’s revenue expectations in Q1 CY2025, but sales fell by 9.8% year on year to $516.2 million. The company expects the full year’s revenue to be around $2.1 billion, close to analysts’ estimates. Its non-GAAP profit of $0.27 per share was 12.9% above analysts’ consensus estimates.
Companies that burn cash at a rapid pace can run into serious trouble if they fail to secure funding.
Without a clear path to profitability, these businesses risk dilution, mounting debt, or even bankruptcy.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Looking back on industrial & environmental services stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Cintas (NASDAQ:CTAS) and its peers.
Even during a down period for the markets, Driven Brands has gone against the grain, climbing to $16.60. Its shares have yielded a 17.4% return over the last six months, beating the S&P 500 by 18.4%. This performance may have investors wondering how to approach the situation.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the industrial & environmental services industry, including CECO Environmental (NASDAQ:CECO) and its peers.
Driven Brands (NASDAQ: DRVN) reports Q4 results, CEO transition, and sale of US car wash business. Revenues fall short, CEO to step down, and business sold for $385M.
A robust auto sales market bodes well for auto maintenance stocks, which can still flourish in weak auto sales environments. These 2 stocks can thrive in 2025.
