Why Mobility Global Stock Gained Today
Key Points
Mobility Global's steadily expanding data collection network is hard to replicate.
The company's strong free cash flow is allowing it to ramp up capital returns to investors.
Shares of Mobility Global (NYSE:MBGL) jumped 16% on Thursday after the automotive analytics provider delivered stronger-than-expected profits for the third quarter.
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Unrivaled data sets CARFAX apart
Mobility Global's revenue rose 7.4% year-over-year to $478 million.
The company's flagship CARFAX business, which provides comprehensive vehicle history reports to consumers and car dealerships, saw sales rise 8% to $313 million.
Mobility Global continues to extend its reach and strengthen its information-gathering network. "CARFAX receives data from more than 100,000 service shops through relationships we've built over decades, one shop at a time," Bill Eager said during a conference call with analysts.
All told, Mobility Global's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 2% to $195 million. And its adjusted earnings per share checked in at $0.40, topping Wall Street's estimates of $0.38.
Mobility Global also generated $186 million in free cash flow, up 37% from the year-ago quarter. This robust cash flow production enabled the company to announce an $800 million stock buyback program.
Mobility Global also recently began paying a $0.06 per-share quarterly dividend. Its shares now yield a bit more than 1%.
E-commerce is a powerful growth driver
Mobility Global expects roughly $1.88 billion in full-year revenue in 2026. Management also lifted the low end of its adjusted EBITDA guidance to $750 million, up from a prior forecast of $745 million.
"As more vehicle shopping moves online, the demand for trusted independent information continues to grow," Eager said.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mobility Global. The Motley Fool has a disclosure policy.