CarGurus Analysts Raise Forecasts After Strong Q3 Earnings Report

CarGurus, Inc. (NASDAQ: CARG) has recently announced its third-quarter earnings, showcasing results that exceeded expectations. The company reported earnings of 45 cents per share, which surpassed the analyst consensus estimate of 42 cents.

In addition to the positive earnings, CarGurus also revealed that its quarterly sales reached $231.358 million. This figure also exceeded the analyst consensus estimate of $223.537 million.

Jason Trevisan, the Chief Executive Officer at CarGurus, expressed his satisfaction with the company’s third quarter performance, stating, "We are proud of our third quarter results as our Marketplace revenue growth further accelerated, and we leveraged our cost base to drive operating efficiencies. Our customer-centric focus has enabled us to capture greater wallet share, as we strive to continuously enhance the value proposition we offer to our dealer partners, delivering actionable insights, tools, and functionalities that will over time drive adoption, engagement, and retention across our platform."

Looking ahead, CarGurus has provided guidance for FY2024, projecting adjusted earnings per share (EPS) between $1.67 to $1.73. This guidance is above the analyst estimate of $1.64. The company also anticipates sales in the range of $885 million to $905 million, compared to the estimate of $883.61 million.

Following the earnings announcement, CarGurus shares saw a rise of 4.9%, leading to a trading price of $35.00 on Friday.

In response to the strong earnings report, several analysts have updated their price targets for CarGurus:

• Oppenheimer analyst Jed Kelly maintained an Outperform rating and increased the price target from $32 to $44.
• DA Davidson analyst Tom White kept a Neutral rating but raised the price target from $26.5 to $38.5.
• JP Morgan analyst Rajat Gupta maintained an Overweight rating and raised the price target from $36 to $40.
• Needham analyst Chris Pierce retained a Buy rating and raised the price target from $27 to $39.

Overall, CarGurus has shown a strong performance in the third quarter, despite broader market challenges, positioning itself for continued success.

CarGurus, Earnings, Analysts