Compared to Estimates, CarGurus (CARG) Q4 Earnings: A Look at Key Metrics

Zacks Equity Research
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For the quarter ended December 2023, CarGurus (CARG) reported revenue of $223.12 million, down 22.2% over the same period last year. EPS came in at $0.35, compared to $0.22 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $218.14 million, representing a surprise of +2.28%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how CarGurus performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Paying Dealers - Total: 30,935 versus the three-analyst average estimate of 31,240.

  • Paying Dealers - U.S: 24,318 versus 24,393 estimated by two analysts on average.

  • Paying Dealers - International: 6,617 compared to the 6,832 average estimate based on two analysts.

  • Revenue- Marketplace: $182.30 million versus $181.29 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.7% change.

  • Revenue- Wholesale: $22 million versus the four-analyst average estimate of $20.32 million. The reported number represents a year-over-year change of -7%.

  • Revenue- Product: $18.80 million compared to the $16.20 million average estimate based on four analysts. The reported number represents a change of -80.6% year over year.

View all Key Company Metrics for CarGurus here>>>

Shares of CarGurus have returned +3% over the past month versus the Zacks S&P 500 composite's +4.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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