CarGurus, Inc., a leading automotive marketplace, recently announced their third-quarter financial results, surpassing market expectations. With earnings per share coming in at 45 cents, beating the analyst consensus of 42 cents, and quarterly sales reaching $231.358 million, exceeding the estimated $223.537 million, the company showcased strong performance. CEO Jason Trevisan expressed satisfaction with the results, attributing the success to the growth in Marketplace revenue and the effective utilization of their cost base to enhance operating efficiencies.
Looking ahead, CarGurus provided optimistic guidance for FY2024, anticipating adjusted EPS in the range of $1.67 to $1.73, higher than the estimated $1.64. Moreover, the company expects sales between $885.000 million and $905.000 million, compared to the projected $883.61 million. This positive outlook reflects their commitment to driving adoption, engagement, and retention across their platform, supported by a customer-centric approach that aims to provide valuable insights and tools to dealer partners. As a result of these strong projections, CarGurus shares rose by 4.9% and were trading at $35.00 on Friday.
Following the earnings announcement, several analysts revised their price targets for CarGurus stock. Jed Kelly from Oppenheimer maintained an Outperform rating and raised the price target from $32 to $44, while Tom White from DA Davidson maintained a Neutral stance and increased the price target from $26.5 to $38.5. Rajat Gupta from JP Morgan upheld an Overweight rating and raised the price target from $36 to $40, and Chris Pierce from Needham reiterated a Buy rating and elevated the price target from $27 to $39. These adjustments reflect analysts' confidence in CarGurus' performance and future prospects.