CarGurus Analysts Boost Their Forecasts Following Better-Than-Expected Earnings

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 $0.45 per share, surpassing the analyst consensus estimate of $0.42 [2] - Quarterly sales reached $231.358 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 $1.67 to $1.73, compared to estimates of $1.64 [2] - Projected sales for FY2024 are between $885 million and $905 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] Analyst Ratings and Price Targets - Oppenheimer analyst Jed Kelly maintained an Outperform rating and raised the price target from $32 to $44 [2] - DA Davidson analyst Tom White maintained a Neutral rating and increased the price target from $26.5 to $38.5 [2] - JP Morgan analyst Rajat Gupta maintained an Overweight rating and raised the price target from $36 to $40 [2] - Needham analyst Chris Pierce maintained a Buy rating and increased the price target from $27 to $39 [2] - The consensus price target for CarGurus is $32.7 based on ratings from 16 analysts, with a high of $44 and a low of $15 [3]