Cars.com (CARS) Q2 Earnings and Revenues Miss Estimates

Company Performance - Cars.com reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.46 per share, but showing an increase from $0.38 per share a year ago, representing an earnings surprise of -10.87% [1] - The company posted revenues of $178.74 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.59%, and showing a slight decrease from year-ago revenues of $178.89 million [2] - Over the last four quarters, Cars.com has not surpassed consensus EPS estimates and has topped consensus revenue estimates only once [2] Stock Performance - Cars.com shares have declined approximately 24.2% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.48 on revenues of $181.96 million, and for the current fiscal year, it is $1.75 on revenues of $725.04 million [7] - The estimate revisions trend for Cars.com was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Cars.com belongs, is currently in the bottom 34% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]