CARS Earnings Prediction
The chart below shows how CARS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CARS sees a +2.78% change in stock price 10 days leading up to the earnings, and a -0.88% change 10 days following the report. On the earnings day itself, the stock moves by +0.62%. This data can give you a slight idea of what to expect for the next quarter's release.
CARS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
179.65M
3.05%
0.42%
Gross Margin
50.80%
-4.04%
-1.97%
Operating Margin
6.38%
-22.29%
19.92%
Net Margin
10.42%
303.88%
63.84%
EPS
0.28
300.00%
64.71%
No Data Available
CARS Earnings Analysis
Cars.com Inc. Common Stock Corporation (CARS.N) Earnings Conference Call
Positive
Record Q3 Revenue: 1. Record Revenue Growth: Cars.com achieved a revenue of $180 million in Q3 2024, marking a 3% year-over-year increase and setting a new record for Q3 revenue.
OEM Revenue Surge: 2. Strong OEM Revenue Performance: OEM revenue grew 17% year-over-year to exceed $17 million, representing the highest revenue for this segment in over three years.
Adjusted EBITDA Margin Success: 3. High Adjusted EBITDA Margin: The company reported an adjusted EBITDA margin of 28.5%, reaching the top of its guidance range and reflecting disciplined operational execution.
Dealer Engagement Growth: 4. Increased Dealer Engagement: AccuTrade saw a 5% quarter-over-quarter increase in appraisal volume, totaling 671,000 appraisals, indicating strong dealer engagement and adoption of the platform.
Strong Free Cash Flow Growth: 5. Robust Free Cash Flow: Year-to-date free cash flow reached $104 million, an increase of approximately $28 million compared to the previous year, driven by adjusted EBITDA growth and efficient working capital management.
Negative
Dealer Customer Count Decline: 1. Decline in Dealer Customer Count: The company ended Q3 with 19,255 dealer customers, down 135 dealers quarter-over-quarter, indicating challenges in maintaining dealer relationships amid market pressures.
Rising Operating Expenses: 2. Increased Operating Expenses: Third quarter operating expenses rose to $168 million, up roughly 5% year-over-year, which could indicate rising costs that may impact profitability.
Decline in Dealer Revenue: 3. Lower Average Revenue Per Dealer: Year-over-year, average revenue per dealer (ARPD) decreased by $70, attributed to the growth of D2C, which has a narrower suite of solutions and lower revenue contribution.
Dealer Funding Challenges: 4. Pressure on Dealer Funding Trends: The company noted that dealer funding trends have been pressured in the near term due to profit normalization, which could hinder future revenue growth.
CDK Outage Impact: 5. Impact of CDK Outage: The sales momentum was negatively affected by the CDK cyber incident, which prolonged the recovery of sales conversations and impacted overall dealer growth.
CARS FAQs
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CARS Earning Call Sentiment
Cars.com Inc. (CARS) Q3 2024 Earnings Call Transcript
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CARS.N
2.38%Positive
The earnings call presents a generally positive outlook with a record revenue, strong OEM growth, and high EBITDA margins. Share repurchases indicate confidence in stock value. Despite some challenges like dealer count decline and CDK outage, management's optimistic guidance and strategic growth initiatives, especially in OEM and AccuTrade, suggest potential for stock appreciation. The market cap indicates a small-cap stock, which may react strongly to positive news. Overall, the sentiment leans positive, with potential for a 2% to 8% stock price increase.
