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Here's What Key Metrics Tell Us About CarGurus (CARG) Q3 Earnings

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CarGurus (CARG - Free Report) reported $219.42 million in revenue for the quarter ended September 2023, representing a year-over-year decline of 48.6%. EPS of $0.34 for the same period compares to $0.21 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $215.65 million, representing a surprise of +1.75%. The company delivered an EPS surprise of +25.93%, with the consensus EPS estimate being $0.27.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how CarGurus performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Paying Dealers - Total: 31,191 versus the three-analyst average estimate of 30,963.
  • Quarterly Average Revenue per Subscribing Dealer (QARSD) - Consolidated: $6,332 compared to the $5,251.95 average estimate based on two analysts.
  • Paying Dealers - U.S: 24,368 versus the two-analyst average estimate of 24,104.
  • Paying Dealers - International: 6,823 versus the two-analyst average estimate of 6,868.
  • Revenue- Marketplace: $177.91 million compared to the $174.73 million average estimate based on three analysts. The reported number represents a change of +7.6% year over year.
  • Revenue- Wholesale: $21.74 million versus $20.46 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -53.8% change.
  • Revenue- Product: $19.78 million versus the three-analyst average estimate of $20.83 million. The reported number represents a year-over-year change of -90.8%.
View all Key Company Metrics for CarGurus here>>>

Shares of CarGurus have returned +6% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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