HyreCar plummets as margins disappoint

HC Liquidating

11/08/2021 13:33

** HyreCar Inc  HYRE.O  shares down 28% at $13.76 premarket
after margins miss expectations
    ** HYRE shares on track for biggest one-day pct drop ever,
if losses hold
    ** Ridesharing, food, and package delivery services firm's
Q2 rev rises 62% yr/yr to $9.1 mln, topping consensus for 7th
straight qtr, per Refinitiv IBES data  urn:newsml:reuters.com:*:nBwzzFnGa
    ** But Q2 adj loss of 36 cents wider than Street view of 12
cents/sh loss
    ** DA Davidson lowers PT by $3 to $22, cites
slower-than-expected ramp of near-term vehicle supply from the
AmeriDrive deal
    ** Brokerage says Q2 gross margin of 8.9% well below its
estimate of 43.5% as higher insurance claim expenses resulted
from HYRE's decision to centralize claims portfolio with single
processor during the qtr
    ** Co guided gross margins to low 30% in Q3 and mid-30% in
Q4, DA Davidson says, vs brokerage's former forecasts of 42.5%
and 40%, respectively
    ** HYRE shares have risen 168% in 2021 as pandemic lockdowns
eased. Stock has rallied roughly five-fold over the past year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))