CarGurus (CARG) Surpasses Q2 Earnings and Revenue Estimates

Core Insights - CarGurus (CARG) reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of$0.34 per share, and up from $0.29 per share a year ago, representing an earnings surprise of 20.59$218.69 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.79%, but down from $239.74 million year-over-year [2] - CarGurus has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is$0.37 on revenues of $219.58 million, and for the current fiscal year, it is$1.45 on revenues of $873.27 million [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Automotive - Replacement Parts industry, to which CarGurus belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]