Online new and used car marketplace Cars.com (NYSE:CARS) will be reporting results tomorrow before market open. Here’s what you need to know.
Cars.com missed analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $178.9 million, up 6.4% year on year. It was a softer quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth. It reported 19,390 active buyers, up 3.2% 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 grow 3.2% year on year to $179.9 million, slowing from the 5.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 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 three times over the last two years.
Looking at Cars.com’s peers in the online marketplace segment, some have already reported their Q3 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 163%, beating analysts’ expectations by 3%, and Shutterstock reported revenues up 7.4%, topping estimates by 4.1%. EverQuote traded up 3.9% following the results while Shutterstock was also up 12.1%.
Read our full analysis of EverQuote’s results here and Shutterstock’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 8.6% on average over the last month. Cars.com is up 1.9% during the same time and is heading into earnings with an average analyst price target of $21.21 (compared to the current share price of $16.06).
When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.
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.