Online auto marketplace CarGurus (NASDAQ: CARG) will be reporting results this Thursday after market close. Here’s what to expect.
CarGurus beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $234 million, up 7% year on year. It was a satisfactory quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations significantly. It reported 33,095 users, up 5.6% year on year.
Is CarGurus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CarGurus’s revenue to grow 1.6% year on year to $235 million, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 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 three times over the last two years.
Looking at CarGurus’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 20.3%, beating analysts’ expectations by 4.3%, and Etsy reported revenues up 2.4%, topping estimates by 3.3%. EverQuote traded up 8.3% following the results while Etsy was down 17.2%.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the online marketplace stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.7% on average over the last month. CarGurus is down 6.2% during the same time and is heading into earnings with an average analyst price target of $39.75 (compared to the current share price of $33.98).
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