Online used car auction platform ACV Auctions (NASDAQ:ACVA) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
ACV Auctions beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $160.6 million, up 29.3% year on year. It was an impressive quarter for the company, with optimistic EBITDA guidance for the next quarter and strong growth in its units. It reported 186,526 units sold, up 21.8% 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 34.8% year on year to $160.4 million, improving from the 12.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ACV Auctions has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.
Looking at ACV Auctions’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 163%, beating analysts’ expectations by 3%, and Shutterstock reported revenues up 7.4%, topping estimates by 4.1%. EverQuote traded up 3.9% following the results while Shutterstock was also up 12.1%.
Read our full analysis of EverQuote’s results here and Shutterstock’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 8.6% on average over the last month. ACV Auctions is down 7% during the same time and is heading into earnings with an average analyst price target of $23.23 (compared to the current share price of $17.65).
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