Online auto marketplace CarGurus (NASDAQ:CARG) will be announcing earnings results this Thursday after market hours. Here’s what to look for.
CarGurus beat analysts’ revenue expectations last quarter, reporting revenues of $241.1 million, up 14.7% year on year. It was a mixed quarter for the company, with revenue guidance for next quarter topping analysts’ expectations but EBITDA guidance for next quarter missing analysts’ expectations. It reported 34,409 users, up 7.5% year on year.
Is CarGurus a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CarGurus’s revenue to grow 14.5% year on year, improving from the 13.4% increase it recorded in the same quarter last year.
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 missed Wall Street’s revenue estimates multiple times over the last two years.
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. EverQuote delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 5.7%, and Etsy reported revenues up 3.1%, topping estimates by 2.4%. EverQuote traded up 63.1% following the results while Etsy was also up 1.8%.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 11.8% on average over the last month. CarGurus is up 8.4% during the same time and is heading into earnings with an average analyst price target of $35.96 (compared to the current share price of $37.68).
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