Earnings To Watch: CarGurus (CARG) Reports Q1 Results Tomorrow

Adam Hejl /
2024/05/08 3:03 am EDT

Online auto marketplace CarGurus (NASDAQ:CARG) will be reporting results tomorrow after the bell. Here's what to look for.

CarGurus beat analysts' revenue expectations by 1.5% last quarter, reporting revenues of $223.1 million, down 22.2% year on year. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. It reported 30,935 users, down 1.2% year on year.

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

This quarter, analysts are expecting CarGurus's revenue to decline 6.5% year on year to $216.8 million, improving from the 46.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.

CarGurus Total Revenue

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. CarGurus has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.

Looking at CarGurus's peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 36%, beating analysts' expectations by 12.1%, and Shutterstock reported flat revenue, topping estimates by 2.8%. MercadoLibre traded up 8.2% following the results while Shutterstock was down 7.5%.

Read our full analysis of MercadoLibre's results here and Shutterstock's results here.

Investors in the online marketplace segment have had fairly steady hands going into earnings, with share prices down 1.1% on average over the last month. CarGurus is down 4.4% during the same time and is heading into earnings with an average analyst price target of $25.2 (compared to the current share price of $22.61).

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