What to Expect from CarGurus (CARG) Fourth Quarter Earnings.
Online car marketplace CarGurus (NASDAQ:) will announce earnings results tomorrow after the bell. Here’s what investors should know.
CarGurus posted revenue of $219.4 million last quarter, down 48.5% year-over-year, beating analysts’ revenue expectations by 1.6%. It was a weak quarter for the company, with slow revenue growth and a disappointing revenue forecast for the following quarter. The company reported 31,191 users, down 0.3% year over year.
Will buying or selling CarGurus lead to profits? Find out by reading the original article on StockStory.
This quarter, analysts expect CarGurus’ revenue to decline 23.4% year-over-year to $219.8 million, a further deceleration from the 15.5% year-over-year decline in revenue the company had reported in the same quarter last year. Adjusted earnings are expected to be $0.34 per share.
Most analysts that follow the company have reconfirmed their estimates in the last thirty days, suggesting that they expect the company to stay on course towards earnings. The company has missed Wall Street revenue estimates only once in the past two years and has exceeded revenue expectations by 5% on average.
Looking at CarGurus’ peers in the online marketplace segment, some of them have already reported their fourth quarter earnings results, giving us an idea of what we can expect. Free market (NASDAQ:) reported revenue growth of 41.9% year-over-year, beating analysts’ estimates of 2.7%, and Remitly reported revenue growing 38.6% year-over-year, beating estimates by 1.3%. MercadoLibre lost 8.1% following the results, while Remitly gained 11.6%.
Read the full analysis of MercadoLibre and Remitly results on StockStory.
Investors in the online marketplace segment have had a steady hand in earnings, with shares down an average of 1.3% over the past month. Over the same period, CarGurus is down 0.3% and is heading to earnings with an analyst price target of $25.1, compared to the stock price of $23.8.