We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is EverQuote (EVER) Up 76.2% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have added about 76.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EverQuote Q3 Earnings and Revenues Beat Estimates
EverQuote incurred a net loss of 20 cents per share in third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line was, however, wider than the year-ago quarter’s loss of 18 cents per share.
EverQuote witnessed lower revenues from the Automotive and Other insurance vertical offset by lower expenses.
Behind the Headlines
Total revenues of $103.2 million surpassed the Zacks Consensus Estimate by 10.7%. The top line declined about 4% year over year, primarily attributable to a weak performance in the Automotive and Other insurance vertical.
Revenues in the Automotive insurance vertical were $88.1 million, down 1.7% year over year. Revenues in the Other insurance vertical totaled $15.1 million, which decreased 15.8% year over year.
Total costs and operating expenses decreased 4.8% to $109.8 million, mainly due to lower cost of revenues, sales and marketing and research and development.
EverQuote’s Variable Marketing Margin decreased 2% year over year in the quarter under review to $31.8 million. Adjusted EBITDA was $1.9 million, which decreased 25.8% year over year.
Financial Update
EverQuote exited the third quarter with cash and cash equivalents of $36.6 million, up 5% from the 2021-end level. Total assets were $163.8 million, up 14.1% year over year. Total stockholders' equity increased 26% to $107.2 million.
Cash used in operations was $3.5 million against cash provided by operations of $2.8 million in the year-ago quarter.
Q4 Guidance
EverQuote estimates revenues in the range of $87 - $92 million, variable marketing margin of $27 - $30 million and adjusted EBITDA in the band of ($1.5) to $1.5 million.
2022 Guidance
EverQuote expects revenues of $403 - $408 million, an increase from the earlier guidance of $400-$410 million.
The company expects a variable marketing margin of $126 - $122 million, up from the previous guidance of $116 - $122 million.
EverQuote expects adjusted EBITDA of $4 to $7 million against the earlier guidance of adjusted EBITDA of ($1) to ($7) million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 31.38% due to these changes.
VGM Scores
At this time, EverQuote has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is EverQuote (EVER) Up 76.2% Since Last Earnings Report?
A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have added about 76.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is EverQuote due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EverQuote Q3 Earnings and Revenues Beat Estimates
EverQuote incurred a net loss of 20 cents per share in third-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of 41 cents. The bottom line was, however, wider than the year-ago quarter’s loss of 18 cents per share.
EverQuote witnessed lower revenues from the Automotive and Other insurance vertical offset by lower expenses.
Behind the Headlines
Total revenues of $103.2 million surpassed the Zacks Consensus Estimate by 10.7%. The top line declined about 4% year over year, primarily attributable to a weak performance in the Automotive and Other insurance vertical.
Revenues in the Automotive insurance vertical were $88.1 million, down 1.7% year over year. Revenues in the Other insurance vertical totaled $15.1 million, which decreased 15.8% year over year.
Total costs and operating expenses decreased 4.8% to $109.8 million, mainly due to lower cost of revenues, sales and marketing and research and development.
EverQuote’s Variable Marketing Margin decreased 2% year over year in the quarter under review to $31.8 million. Adjusted EBITDA was $1.9 million, which decreased 25.8% year over year.
Financial Update
EverQuote exited the third quarter with cash and cash equivalents of $36.6 million, up 5% from the 2021-end level. Total assets were $163.8 million, up 14.1% year over year. Total stockholders' equity increased 26% to $107.2 million.
Cash used in operations was $3.5 million against cash provided by operations of $2.8 million in the year-ago quarter.
Q4 Guidance
EverQuote estimates revenues in the range of $87 - $92 million, variable marketing margin of $27 - $30 million and adjusted EBITDA in the band of ($1.5) to $1.5 million.
2022 Guidance
EverQuote expects revenues of $403 - $408 million, an increase from the earlier guidance of $400-$410 million.
The company expects a variable marketing margin of $126 - $122 million, up from the previous guidance of $116 - $122 million.
EverQuote expects adjusted EBITDA of $4 to $7 million against the earlier guidance of adjusted EBITDA of ($1) to ($7) million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 31.38% due to these changes.
VGM Scores
At this time, EverQuote has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.