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What To Expect From CarGurus’s (CARG) Q4 Earnings


Petr Huřťák /
2024/02/25 2:00 am EST

Online auto marketplace CarGurus (NASDAQ:CARG) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Last quarter CarGurus reported revenues of $219.4 million, down 48.5% year on year, beating analyst revenue expectations by 1.6%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter. The company reported 31,191 users, down 0.3% 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 23.4% year on year to $219.8 million, a further deceleration on the 15.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.34 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%.

Looking at CarGurus's peers in the online marketplace segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. MercadoLibre delivered top-line growth of 41.9% year on year, beating analyst estimates by 2.7% and Remitly reported revenues up 38.6% year on year, exceeding estimates by 1.3%. MercadoLibre traded down 8.1% on the results, and Remitly was up 11.6%.

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

Investors in the online marketplace segment have had steady hands going into the earnings, with the stocks down on average 1.3% over the last month. CarGurus is down 0.3% during the same time, and is heading into the earnings with analyst price target of $25.1, compared to share price of $23.8.

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