Online new and used car marketplace Cars.com (NYSE: CARS) will be reporting results this Thursday before market open. Here’s what you need to know.
Cars.com missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $179 million, flat year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but disappointing growth in its buyers. It reported 19,250 active buyers, flat year on year.
Is Cars.com a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Cars.com’s revenue to be flat year on year at $179.2 million, slowing from the 6.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.42 per share.
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. Cars.com has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Cars.com’s peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Shutterstock delivered year-on-year revenue growth of 21.3%, beating analysts’ expectations by 7.5%, and EverQuote reported revenues up 33.7%, in line with consensus estimates. Shutterstock’s stock price was unchanged after the resultswhile EverQuote was down 7.8%.
Read our full analysis of Shutterstock’s results here and EverQuote’s results here.
Investors in the online marketplace segment have had steady hands going into earnings, with share prices flat over the last month. Cars.com is up 4.4% during the same time and is heading into earnings with an average analyst price target of $16.21 (compared to the current share price of $12.63).
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