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TrueCar, Inc. (TRUE - Free Report) reported second-quarter 2018 adjusted earnings of $0.03 per share, inline with the Zacks Consensus Estimate.
Revenues of $87.9 million missed the Zacks Consensus Estimate by 0.32% and were within the company’s guided range of $87-$89 million. However, revenues were up 7.4% year over year.
Following second-quarter results on Aug 10, its share price was down 3%. We observe that the stock has lost 22.2% against its industry’s growth of 4% in the past year.
Operating Metrics
Average monthly unique visitors were 7.8 million in the second quarter, up 8% year over year.
Units were 250,269 in the second quarter, up 3% from the year-ago quarter.
Monetization was $332 in the second quarter versus $319 in the year-ago quarter.
As of Jun 30, 2018, franchise dealer count was 12,368, up 1.3% year over year, while independent dealer count was up 5.3% year over year to 3,166.
Operating Results
Per the press release, gross margin was 91.2%, down 10 basis points from the year-ago quarter. The decrease was due to an unfavorable mix.
Operating expenses of $81.2 million increased 6.2% year over year. As a percentage of sales, technology and development expenses increased, while sales and marketing, as well as general &administrative costs decreased.
Adjusted EBITDA margin was 9.9%, up from 9.0% in the year-ago quarter.
Balance Sheet & Cash Flow
Total cash, cash equivalents and Marketable securities were $198.5 million in the second quarter versus $195.8 million in the last reported quarter.
Accounts receivable were $42.8 million in the quarter versus $37.3 million in the last reported quarter.
Guidance
For the third quarter, TrueCar expects revenues in the range of $93-$95 million. The Zacks Consensus Estimate is pegged at $98.8 million. Adjusted EBITDA is expected in the range of $10-$11 million, while units are anticipated within 274-279k.
For full-year 2018, TrueCar expects revenues in the range of $360-$365 million. The Zacks Consensus Estimate is pegged at $360.8 million. Adjusted EBITDA is expected in the range of $36-$40 million, while units are anticipated within 1,030-1,040k.
Long-term earnings growth for Expedia, Infineon Technologies and Rambus is currently projected to be 16.1%, 7.5% and 10%, respectively.
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TrueCar Reports In-Line Q2 Earnings, Lags Revenue Estimates
TrueCar, Inc. (TRUE - Free Report) reported second-quarter 2018 adjusted earnings of $0.03 per share, inline with the Zacks Consensus Estimate.
Revenues of $87.9 million missed the Zacks Consensus Estimate by 0.32% and were within the company’s guided range of $87-$89 million. However, revenues were up 7.4% year over year.
Following second-quarter results on Aug 10, its share price was down 3%. We observe that the stock has lost 22.2% against its industry’s growth of 4% in the past year.
Operating Metrics
Average monthly unique visitors were 7.8 million in the second quarter, up 8% year over year.
Units were 250,269 in the second quarter, up 3% from the year-ago quarter.
Monetization was $332 in the second quarter versus $319 in the year-ago quarter.
As of Jun 30, 2018, franchise dealer count was 12,368, up 1.3% year over year, while independent dealer count was up 5.3% year over year to 3,166.
Operating Results
Per the press release, gross margin was 91.2%, down 10 basis points from the year-ago quarter. The decrease was due to an unfavorable mix.
Operating expenses of $81.2 million increased 6.2% year over year. As a percentage of sales, technology and development expenses increased, while sales and marketing, as well as general &administrative costs decreased.
Adjusted EBITDA margin was 9.9%, up from 9.0% in the year-ago quarter.
Balance Sheet & Cash Flow
Total cash, cash equivalents and Marketable securities were $198.5 million in the second quarter versus $195.8 million in the last reported quarter.
Accounts receivable were $42.8 million in the quarter versus $37.3 million in the last reported quarter.
Guidance
For the third quarter, TrueCar expects revenues in the range of $93-$95 million. The Zacks Consensus Estimate is pegged at $98.8 million. Adjusted EBITDA is expected in the range of $10-$11 million, while units are anticipated within 274-279k.
For full-year 2018, TrueCar expects revenues in the range of $360-$365 million. The Zacks Consensus Estimate is pegged at $360.8 million. Adjusted EBITDA is expected in the range of $36-$40 million, while units are anticipated within 1,030-1,040k.
TrueCar, Inc. Price, Consensus and EPS Surprise
TrueCar, Inc. Price, Consensus and EPS Surprise | TrueCar, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, TrueCar carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same industry include Expedia Group, Inc. (EXPE - Free Report) , Infineon Technologies AG (IFNNY - Free Report) and Rambus Inc. (RMBS - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Expedia, Infineon Technologies and Rambus is currently projected to be 16.1%, 7.5% and 10%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>