Online new and used car marketplace Cars.com (NYSE:CARS) will be reporting earnings tomorrow before market hours. Here's what you need to know.
Last quarter Cars.com reported revenues of $168.2 million, up 3.26% year on year, missing analyst expectations by 0.53%. It was a weak quarter for the company, with slow revenue growth and a decline in its user base. The company reported 18.8 thousand active buyers, down 3.75% year on year.
Is Cars.com buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Cars.com's revenue to grow 5.08% year on year to $173 million, in line with the 5.14% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.48 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at Cars.com's peers in the consumer internet segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Teladoc (NYSE:TDOC) delivered top-line growth of 7.99% year on year, missing analyst estimates by 0.43% and Shutterstock (NYSE:SSTK) reported revenues up 14.3% year on year, exceeding estimates by 8.76%. Teladoc traded down 4.3% on the results, and Shutterstock was up 13.8%.
Read the full analysis of Teladoc's and Shutterstock's results on StockStory.
There has been a stampede out of high valuation technology stocks and while some of the consumer internet stocks have fared somewhat better, they have not been spared, with share price declining 3.56% over the last month. Cars.com is down 7.3% during the same time, and is heading into the earnings with analyst price target of $23.4, compared to share price of $15.2.
The author has no position in any of the stocks mentioned.
