Online auto marketplace CarGurus (NASDAQ: CARG) will be reporting results tomorrow after the bell. Here’s what investors should know.
CarGurus missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $228.5 million, up 2.4% year on year. It was a mixed quarter for the company, with EBITDA guidance for next quarter topping analysts’ expectations but revenue guidance for next quarter meeting analysts’ expectations. It reported 32,010 users, up 3.5% 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 4.8% year on year to $226.2 million, a reversal from the 7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at CarGurus’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 83%, beating analysts’ expectations by 5.2%, and Etsy reported flat revenue, topping estimates by 1.4%. EverQuote traded down 12.2% following the results while Etsy was also down 8%.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 20.6% on average over the last month. CarGurus is up 5.4% during the same time and is heading into earnings with an average analyst price target of $38.88 (compared to the current share price of $26.56).
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