Online auto marketplace CarGurus (NASDAQ: CARG) will be announcing earnings results this Thursday after market close. Here’s what to look for.
CarGurus met analysts’ revenue expectations last quarter, reporting revenues of $251 million, up 13.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but revenue guidance for next quarter slightly missing analysts’ expectations. It reported 34,629 users, up 4.6% 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, the market is expecting CarGurus’s revenue to grow 10.7% year on year, slowing from the 13.5% 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. CarGurus has missed Wall Street’s revenue estimates multiple 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 25.4%, beating analysts’ expectations by 7.6%, and Etsy reported revenues up 10.9%, topping estimates by 3.8%. EverQuote traded up 20.3% following the results while Etsy was also up 4.5%.
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 4.4% on average over the last month. CarGurus is up 15.1% during the same time and is heading into earnings with an average analyst price target of $41.27 (compared to the current share price of $33.78).
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