CarGurus (NASDAQ:CARG) plunged in pre-market trading after its first-quarter results fell short of estimates. The online marketplace of new and used cars forecasted Q1 revenues of $201 million to $221 million, which fell short of Street estimates of $238.4 million. The company expects Q1 adjusted earnings to be between $0.24 and $0.29 per share, below the consensus estimates of $0.31 per share.
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In the fourth quarter, the company posted fourth-quarter revenues of $223.1 million, a decline of 22% year-over-year but above analysts’ estimates of $220.1 million. CARG reported adjusted earnings of $0.35 per share in Q4 compared to earnings of $0.22 per share in the same period last year, beating Street estimates of $0.34 per share.
Is CARG a Good Stock to Buy?
Analysts remain sidelined about CARG stock with a Hold consensus rating based on two Buys, one Hold, and one Sell. Over the past year, CARG stock has jumped by more than 35%, and the average CARG price target of $23.75 implies a downside potential of 0.6% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
