CARG Earnings Prediction
The chart below shows how CARG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CARG sees a +2.74% change in stock price 10 days leading up to the earnings, and a +0.37% change 10 days following the report. On the earnings day itself, the stock moves by -0.37%. This data can give you a slight idea of what to expect for the next quarter's release.
CARG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
231.36M
5.44%
5.79%
Gross Margin
82.11%
12.42%
-0.35%
Operating Margin
19.13%
81.67%
22.47%
Net Margin
9.73%
12.49%
-130.97%
EPS
0.21
5.00%
-131.82%
No Data Available
CARG Earnings Analysis
CarGurus, Inc. Class A Common Stock Corporation (CARG.O) Earnings Conference Call
Positive
Quarterly Revenue Increase: Consolidated revenue for the third quarter was $231 million, up 5% year-over-year, driven by double-digit expansion of our marketplace business.
Marketplace Revenue Increase: Marketplace revenue was $204 million for the third quarter, up 15% year-over-year and in line with the high end of our guidance range.
Gross Profit Increase: Our non-GAAP consolidated gross profit was $192 million, up 13% year-over-year, reflecting the increase in consolidated adjusted EBITDA and lower diluted share count.
EBITDA Growth and Margin: Consolidated adjusted EBITDA was $64.9 million, up 33% year-over-year, with a margin of 28%, reflecting the continued momentum in marketplace revenue and high full-term margins.
Dealer Count Increase: Our global paying dealer count was up 332 dealers this quarter, as we have continued to gain market share in a consolidating industry.
Negative
Wholesale Revenue Decline: Whole sale revenue was $12 million for the third quarter, down 44% year-over-year and down 8% sequentially, driven by a decline in dealer-to-dealer transaction volume as we continue to optimize unit economics and focus our efforts on improving transportation operations and customer experience.
Quarterly Product Revenue Analysis: Product revenue was $15 million for the third quarter, down 23% year-over-year, but up 46% sequentially.
Digital Wholesale Impairment Charge: We recognized a $16.8 million non-cash impairment charge in our digital wholesale segment, related to the discontinuation of CG Buy Online pilot, one of the initiatives that allowed consumers to purchase dealer vehicles on our site.
Impairment Charge Recognition: During the quarter, we were recognized a $16.8 million non-cash impairment charge in our digital wholesale segment, related to the discontinuation of CG Buy Online pilot, one of the initiatives that allowed consumers to purchase dealer vehicles on our site.
Cash Position Increase: We ended the third quarter with $247 million in cash and cash equivalents, an increase of $31 million from the end of the second quarter.
CARG FAQs
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CARG Earning Call Sentiment
CarGurus, Inc. (CARG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CARG.O
-17.13%Positive
The earnings call summary shows strong financial performance with a 5% revenue increase and significant EBITDA growth. The Q&A reveals strategic focus on brand marketing and product pipeline, despite some unclear responses. The new $200 million share repurchase program is a positive catalyst, and the market cap suggests moderate stock price sensitivity. Overall, the positive financials and strategic initiatives outweigh any negative aspects, predicting a stock price increase of 2% to 8%.
