CarGurus (CARG) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

Core Viewpoint - The market anticipates CarGurus (CARG) to report a year-over-year increase in earnings despite lower revenues for the quarter ended June 2024, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - CarGurus is expected to post quarterly earnings of $0.34 per share, reflecting a year-over-year increase of +17.2$214.85 million, down 10.4% from the previous year [3]. - The consensus EPS estimate has been revised 0.65% higher in the last 30 days, indicating a slight positive adjustment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for CarGurus is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.95%, indicating a bearish outlook from analysts [10]. - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [8]. Historical Performance - In the last reported quarter, CarGurus exceeded the expected earnings of $0.29 per share by delivering$0.32, resulting in a surprise of +10.34% [11]. - Over the past four quarters, CarGurus has beaten consensus EPS estimates three times [12]. Conclusion - CarGurus does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when making decisions regarding the stock ahead of the earnings release [15].