Online auto marketplace CarGurus (NASDAQ:CARG) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
CarGurus beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $231.4 million, up 5.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but revenue guidance for next quarter missing analysts’ expectations significantly. It reported 31,684 users, up 1.6% year on year.
Is CarGurus a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting CarGurus’s revenue to grow 4.3% year on year to $232.8 million, a reversal from the 22.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CarGurus has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.6% on average.
Looking at CarGurus’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Etsy delivered year-on-year revenue growth of 1.2%, missing analysts’ expectations by 1.2%, and Coinbase reported revenues up 138%, topping estimates by 22%. Coinbase traded down 8% following the results.
Read our full analysis of Etsy’s results here and Coinbase’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 7.5% on average over the last month. CarGurus is up 2.9% during the same time and is heading into earnings with an average analyst price target of $40.12 (compared to the current share price of $40.07).
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