Why CarGurus (CARG) Could Beat Earnings Estimates Again

Core Insights - CarGurus (CARG) is positioned to potentially continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 13.87% [1][3] Earnings Performance - In the last reported quarter, CarGurus achieved earnings of $0.45 per share, surpassing the Zacks Consensus Estimate of$0.42 per share, resulting in a surprise of 7.14% [2] - For the previous quarter, the company was expected to report earnings of $0.34 per share but delivered$0.41 per share, leading to a surprise of 20.59% [2] Earnings Estimates - Recent estimates for CarGurus have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6] - The current Earnings ESP for CarGurus stands at +4%, reflecting increased analyst optimism regarding its near-term earnings potential [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time, suggesting a high probability of exceeding consensus estimates [4][6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5]