: Shares of car-wash chain Mister Car Wash sink as full-year outlook comes up short

Shares of car-wash chain Mister Car Wash MCW fell after hours on Thursday after the company’s full-year outlook came up short of forecasts. The chain, which runs more than 425 car washes nationwide, said it expected net sales of $925 million to $960 million, compared with FactSet forecasts for $956.7 million. The company also forecast 2023 adjusted earnings per share of between 30 cents and 35 cents, and same-store sales growth of flat to 3%. Those, too, were below Wall Street’s forecasts for 38 cents and 3.3% growth, respectively. Shares fell 4.1% after hours. Executives said they expected same-store sales to be lower in the first half of the year due to “more difficult year-over-year comparisons.” Fourth-quarter results, however, beat expectations. For 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%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.