Online used car auction platform ACV Auctions (NYSE: ACVA) will be reporting earnings this Monday afternoon. Here’s what to look for.
ACV Auctions beat analysts’ revenue expectations last quarter, reporting revenues of $204.2 million, up 11.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates.
Is ACV Auctions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ACV Auctions’s revenue to grow 11.1% year on year, slowing from the 20.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. ACV Auctions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ACV Auctions’s peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Etsy delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 3.4%, and MercadoLibre reported revenues up 49.8%, topping estimates by 4.4%. Etsy traded down 4.4% following the results while MercadoLibre was also down 4.7%.
Read our full analysis of Etsy’s results here and MercadoLibre’s results here.
Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. ACV Auctions is up 12.4% during the same time and is heading into earnings with an average analyst price target of $9.43 (compared to the current share price of $7.50).
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