Cars.com (CARS) Reports Earnings Tomorrow. What To Expect

Max Juang /
2023/08/02 4:00 am EDT

Online new and used car marketplace Cars.com (NYSE:CARS) will be reporting earnings tomorrow before market hours. Here's what to expect.

Last quarter Cars.com reported revenues of $167.1 million, up 5.6% year on year, in line with analyst expectations. It was a weaker quarter for the company, with slow revenue growth and a decline in its user base. The company reported 19.2 thousand active buyers, down 1.61% year on year.

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This quarter analysts are expecting Cars.com's revenue to grow 3.81% year on year to $169.1 million, slowing down from the 4.72% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 per share.

Cars.com 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 missed Wall St's revenue estimates twice over the last two years.

With Cars.com being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for consumer internet stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 10.2% over the last month. Cars.com is up 16.3% during the same time, and is heading into the earnings with analyst price target of $22.57, compared to share price of $22.67.

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