Online new and used car marketplace Cars.com (NYSE:CARS) will be reporting results this Thursday before the bell. Here’s what to look for.
Cars.com met analysts’ revenue expectations last quarter, reporting revenues of $180.2 million, flat year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates. It reported 19,390 active buyers, flat year on year.
Is Cars.com 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 Cars.com’s revenue to grow 1.1% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Cars.com has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Cars.com’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 24.6%, beating analysts’ expectations by 2.6%, and Teladoc reported a revenue decline of 4%, falling short of estimates by 1.3%. EverQuote traded down 1% following the results while Teladoc was also down 28.3%.
Read our full analysis of EverQuote’s results here and Teladoc’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices flat over the last month. Cars.com is up 4.8% during the same time and is heading into earnings with an average analyst price target of $13 (compared to the current share price of $11.95).
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