Cars.com (CARS) Q4 Earnings Report Preview: What To Look For
Online new and used car marketplace Cars.com (NYSE:CARS) will be reporting results tomorrow before market hours. Here's what you need to know.
Last quarter Cars.com reported revenues of $174.3 million, up 5.9% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in its user base and slow revenue growth. The company reported 18,715 active buyers, down 4.4% year on year.
Is Cars.com buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Cars.com's revenue to grow 6% year on year to $178.4 million, in line with the 6.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.52 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 Q4 earnings results, giving us a hint of what we can expect. Teladoc delivered top-line growth of 3.6% year on year, missing analyst estimates by 1.6%. Teladoc was down12.3%.
Read our full analysis of Teladoc's results here.
Investors in the consumer internet segment have had steady hands going into the earnings, with the stocks up on average 1.7% over the last month. Cars.com is up 3.2% during the same time, and is heading into the earnings with analyst price target of $23.4, compared to share price of $18.5.
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