Cars.com misses Q2 revenue estimates, raises share buyback target
Overview
Cars.com Q2 revenue misses analyst expectations, adjusted EPS beats, per LSEG data
Co repurchased 2.1 mln shares, raising FY 2025 buyback target to $70-$90 mln
Revenue for Q2 totaled $178.7 mln, roughly flat yr/yr
Outlook
Company anticipates low-single digit revenue growth for H2 2025
Company reaffirms full-year adjusted EBITDA margin guidance of 29% to 31%
Result Drivers
DEALER REVENUE - Subscription-based Dealer revenue was down 1% year-over-year, primarily reflecting changes in customer and product mix
ACCUTRADE ADOPTION - AccuTrade appraisals grew 45% year-over-year, reflecting increased product adoption and customer engagement
OPERATIONAL EFFICIENCIES - Cost management and operational efficiencies helped reduce operating expenses, contributing to a high adjusted EBITDA margin
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $178.70 mln | $179.40 mln (7 Analysts) |
Q2 Adjusted EPS | Beat | $0.41 | $0.07 (6 Analysts) |
Q2 Net Income | $7 mln | ||
Q2 Adjusted EBITDA | $50.90 mln | ||
Q2 Adjusted Operating Expenses | $152.70 mln | ||
Q2 Operating Expenses | $163.50 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Cars.com Inc is $15.25, about 13.9% above its August 6 closing price of $13.13
The stock recently traded at 28 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release:
