Online used car auction platform ACV Auctions (NASDAQ: ACVA) will be reporting results tomorrow after market close. Here’s what investors should know.
ACV Auctions beat analysts’ revenue expectations by 7% last quarter, reporting revenues of $171.3 million, up 44% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 198,354 units sold, up 32.2% year on year.
Is ACV Auctions a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ACV Auctions’s revenue to grow 31.6% year on year to $155.8 million, improving from the 20.8% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 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. ACV Auctions has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ACV Auctions’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coinbase delivered year-on-year revenue growth of 138%, beating analysts’ expectations by 22%, and Robinhood reported revenues up 115%, topping estimates by 7.7%. Coinbase traded down 8% following the results while Robinhood was up 14%.
Read our full analysis of Coinbase’s results here and Robinhood’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 9.5% on average over the last month. ACV Auctions’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $24.79 (compared to the current share price of $22.05).
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