Driven Brands Holdings Inc. (NASDAQ: DRVN) saw its stock price soar 6.60% in pre-market trading on Tuesday following the release of its third-quarter earnings report that exceeded analyst expectations. The company, which operates a portfolio of automotive services businesses, delivered a strong performance driven by robust growth in its Take 5 segment and an improved financial position.

For the third quarter, Driven Brands reported adjusted earnings per share of $0.34, surpassing the analyst consensus estimate of $0.30 by 13.33%. This represents a significant increase from $0.23 per share in the same period last year. Revenue for the quarter came in at $535.7 million, slightly above the expected $535 million and up 6.6% year-over-year. The company's Take 5 segment showed particularly strong results, with a 14% increase in revenue and 7% same-store sales growth, marking its 19th consecutive quarter of same-store sales growth.

Investors were further encouraged by Driven Brands' improved financial outlook. The company raised its fiscal year 2025 adjusted earnings per share guidance to a range of $1.23 to $1.28, up from the previous guidance of $1.15 to $1.25. Additionally, Driven Brands reported an improved net leverage ratio of 3.8x adjusted EBITDA, demonstrating progress in strengthening its balance sheet. These positive developments, combined with the company's resilient business model in the face of a dynamic consumer environment, appear to be driving the significant stock price increase.