CarGurus (CARG) Reports Q3 Earnings: What Key Metrics Have to Say

Core Viewpoint - CarGurus reported a revenue of $231.36 million for Q3 2024, marking a 5.4% year-over-year increase and exceeding the Zacks Consensus Estimate by 3.75% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.45, up from $0.34 a year ago, representing a surprise of 7.14% compared to the consensus estimate of $0.42 [1] - Total paying dealers reached 31,684, slightly above the average estimate of 31,542 [3] - U.S. paying dealers numbered 24,561, compared to the estimated 24,534 [3] - International paying dealers totaled 7,123, exceeding the average estimate of 6,946 [3] Revenue Breakdown - Marketplace revenue was reported at $204.02 million, surpassing the estimated $201.52 million, reflecting a 14.7% increase year-over-year [3] - Wholesale revenue was $12.11 million, slightly above the average estimate of $11.86 million, but down 44.3% year-over-year [3] - Product revenue reached $15.23 million, significantly higher than the estimated $9.13 million, but down 23% year-over-year [3] Stock Performance - CarGurus shares have increased by 7.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.2% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [4]