CarGurus (CARG) To Report Earnings Tomorrow: Here Is What To Expect

Petr Huřťák /
2023/11/06 2:03 am EST

Online auto marketplace CarGurus (NASDAQ:CARG) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter CarGurus reported revenues of $239.7 million, down 53.1% year on year, beating analyst revenue expectations by 4.1%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. The company reported 31,097 users, down 0.1% year on year.

Is CarGurus buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting CarGurus's revenue to decline 49.4% year on year to $216 million, a deceleration on the 91.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.

CarGurus Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 5.1%.

Looking at CarGurus's peers in the online marketplace segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Teladoc delivered top-line growth of 8% year on year, missing analyst estimates by 0.4% and Airbnb reported revenues up 17.8% year on year, exceeding estimates by 0.8%. Teladoc traded down 4.3% on the results, Airbnb was down 3.4%.

Read our full analysis of Teladoc's results here and Airbnb's results here.

There has been positive sentiment among investors in the online marketplace segment, with the stocks up on average 2.4% over the last month. CarGurus is up 7% during the same time, and is heading into the earnings with analyst price target of $22.9, compared to share price of $18.67.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.