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CarGurus Analysts Boost Their Forecasts Following Better-Than-Expected Earnings
CARGCarGurus(CARG) Benzinga·2024-11-08 19:34

Core Insights - CarGurus, Inc. reported better-than-expected third-quarter financial results and provided FY24 guidance with EPS expectations above estimates [1][2] Financial Performance - The company reported quarterly earnings of 0.45pershare,surpassingtheanalystconsensusestimateof0.45 per share, surpassing the analyst consensus estimate of 0.42 [2] - Quarterly sales reached 231.358million,exceedingtheanalystconsensusestimateof231.358 million, exceeding the analyst consensus estimate of 223.537 million [2] Management Commentary - CEO Jason Trevisan highlighted the acceleration in Marketplace revenue growth and the company's focus on cost efficiency, which contributed to operating efficiencies [2] - The company aims to enhance its value proposition for dealer partners through actionable insights and tools, driving adoption and retention on its platform [2] Future Guidance - For FY2024, CarGurus expects adjusted EPS in the range of 1.67to1.67 to 1.73, compared to estimates of 1.64[2]−ProjectedsalesforFY2024arebetween1.64 [2] - Projected sales for FY2024 are between 885 million and 905million,slightlyabovethepreviousestimateof905 million, slightly above the previous estimate of 883.61 million [2] Stock Performance - Following the earnings announcement, CarGurus shares increased by 4.9%, trading at 35.00[2]AnalystRatingsandPriceTargets−OppenheimeranalystJedKellymaintainedanOutperformratingandraisedthepricetargetfrom35.00 [2] Analyst Ratings and Price Targets - Oppenheimer analyst Jed Kelly maintained an Outperform rating and raised the price target from 32 to 44[2]−DADavidsonanalystTomWhitemaintainedaNeutralratingandincreasedthepricetargetfrom44 [2] - DA Davidson analyst Tom White maintained a Neutral rating and increased the price target from 26.5 to 38.5[2]−JPMorgananalystRajatGuptamaintainedanOverweightratingandraisedthepricetargetfrom38.5 [2] - JP Morgan analyst Rajat Gupta maintained an Overweight rating and raised the price target from 36 to 40[2]−NeedhamanalystChrisPiercemaintainedaBuyratingandincreasedthepricetargetfrom40 [2] - Needham analyst Chris Pierce maintained a Buy rating and increased the price target from 27 to 39[2]−TheconsensuspricetargetforCarGurusis39 [2] - The consensus price target for CarGurus is 32.7 based on ratings from 16 analysts, with a high of 44andalowof44 and a low of 15 [3]