Online used car auction platform ACV Auctions (NASDAQ:ACVA) will be reporting results tomorrow after the bell. Here's what investors should know.
ACV Auctions beat analysts' revenue expectations by 1.2% last quarter, reporting revenues of $145.7 million, up 21.8% year on year. It was a slower quarter for the company, with a miss of analysts' unit estimates. It reported 174,631 units sold, up 15.2% 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 25.8% year on year to $156.3 million, improving from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 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 2.3% on average.
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. MercadoLibre delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and EverQuote reported revenues up 72.3%, topping estimates by 13.9%. MercadoLibre traded up 10.7% following the results.
Read our full analysis of MercadoLibre's results here and EverQuote's results here.
Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed inflation signals have led to uncertainty around rate cuts, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. ACV Auctions is down 16.3% during the same time and is heading into earnings with an average analyst price target of $22.2 (compared to the current share price of $14.96).
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