CarGurus Q4 Earnings Review: Analyzing Financial Performance

For the quarter ending December 2024, CarGurus (CARG) reported revenue of $228.54 million, which represents an increase of 2.4% compared to the same period last year. Earnings per share (EPS) stood at $0.55, a significant rise from $0.35 in the comparable quarter of the previous year.

Despite these figures, the reported revenue fell short of the Wall Street expectations, showing a surprise percentage of -0.79% against the Zacks Consensus Estimate of $230.37 million. However, when it comes to EPS, the report exceeded the consensus estimate of $0.50, making a positive surprise of +10.00%.

Investors often evaluate revenue and earnings changes from year to year, alongside comparing them with Wall Street's expectations, to make informed decisions about their investments. Key metrics can sometimes provide a clearer picture of a company's financial health and are vital for understanding both top- and bottom-line performance.

In this context, the following are some important metrics for CarGurus from the reported quarter, compared with analyst projections:

• Paying Dealers - Total: 32,010, which is slightly above the expected average of 31,934 from three analysts.
• Quarterly Average Revenue per Subscribing Dealer (QARSD) - Consolidated: $6,144, below the estimated average of $6,186.98 from two analysts.
• Paying Dealers - U.S: 24,692, exceeding the estimate of 24,678 from two analysts.
• Paying Dealers - International: 7,318, which is better than the average estimate of 7,222 from two analysts.
• Revenue - Marketplace: $210.20 million, which is lower than the consensus of $211.01 million, yet represents a year-over-year growth of +15.3%.
• Revenue - Wholesale: $9.90 million, falling short of the predicted $10.45 million by four analysts, reflecting a -55% decrease compared to the previous year.
• Revenue - Product: $8.50 million, compared to the $9.12 million estimated by four analysts, representing a significant -54.8% change from the year-ago quarter.

CarGurus shares have experienced a decline of -0.9% over the past month, while the Zacks S&P 500 composite saw an increase of +2.6%. Currently, the stock holds a Zacks Rank of #3 (Hold), indicating that it may perform in line with the broader market soon.

Earnings, Revenue, Stocks