Instacart, Inc. (CART), the online grocery delivery and pickup service provider, experienced a pre-market plunge of nearly 9% on Wednesday, February 26, 2025, following its fourth-quarter 2024 earnings report and guidance for the first quarter of 2025.
Despite reporting better-than-expected earnings per share (EPS) of $0.53 for Q4 2024, surpassing analysts' consensus estimate of $0.38, Instacart's stock tumbled due to a combination of factors:
1. Revenue Miss: Instacart's revenue for Q4 2024 came in at $883 million, narrowly missing analysts' expectations of $891 million.
2. Lower Profit Guidance: The company's guidance for adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) in Q1 2025 fell below analysts' estimates, forecasting $220 million to $230 million compared to the projected $237.3 million.
While Instacart reported a 10% year-over-year increase in gross transaction value (GTV) to $8.65 billion and an 11% rise in orders to 77.5 million, investors appeared to be concerned about the company's competitive valuation and the intensifying competition in the online grocery delivery space.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.