Cars.com (NYSE:CARS) Posts Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• Cars.com reported earnings of $0.41 EPS, missing analysts' estimates of $0.45 by $0.04, with revenue also falling short at $178.74 million versus an estimate of $179.43 million.
• The company's net margin was 5.71%, and it experienced a 0.1% year-over-year decline in revenue compared to the same quarter last year.
• Despite the earnings miss, Cars.com's stock increased to $12.39, with recent upgrades in analyst ratings pushing a consensus target price of $17.30.

Cars.com (NYSE:CARS - Get Free Report) announced its earnings results on Thursday. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.45 by ($0.04), Briefing.com reports. The firm had revenue of $178.74 million during the quarter, compared to analyst estimates of $179.43 million. Cars.com had a net margin of 5.71% and a return on equity of 17.43%. The firm's revenue for the quarter was down .1% compared to the same quarter last year. During the same period last year, the company earned $0.38 earnings per share.

Cars.com Stock Performance

Cars.com stock traded up $0.62 during mid-day trading on Friday, reaching $12.39. 1,881,746 shares of the company were exchanged, compared to its average volume of 768,815. Cars.com has a twelve month low of $9.56 and a twelve month high of $20.47. The firm's 50-day simple moving average is $11.92 and its two-hundred day simple moving average is $12.61. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.65 and a current ratio of 1.82. The firm has a market cap of $786.82 million, a PE ratio of 19.98 and a beta of 1.76.

Institutional Trading of Cars.com

A number of hedge funds have recently added to or reduced their stakes in CARS. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Cars.com by 19.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 242,251 shares of the company's stock valued at $2,730,000 after buying an additional 39,561 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Cars.com by 23.4% in the 1st quarter. AQR Capital Management LLC now owns 33,860 shares of the company's stock valued at $382,000 after buying an additional 6,416 shares during the period. Finally, Royal Bank of Canada lifted its holdings in shares of Cars.com by 122.8% in the 1st quarter. Royal Bank of Canada now owns 29,655 shares of the company's stock valued at $334,000 after buying an additional 16,347 shares during the period. 89.15% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

CARS has been the subject of a number of research analyst reports. JPMorgan Chase & Co. raised Cars.com from a "neutral" rating to an "overweight" rating and set a $14.00 target price for the company in a research report on Thursday, July 17th. B. Riley upped their target price on Cars.com from $21.00 to $22.00 and gave the company a "buy" rating in a research report on Friday. UBS Group decreased their target price on Cars.com from $12.00 to $11.00 and set a "neutral" rating for the company in a research report on Friday. Finally, Wall Street Zen raised Cars.com from a "hold" rating to a "buy" rating in a research report on Saturday. One equities research analyst has rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $17.30.

About Cars.com

Cars.com Inc, through its subsidiaries, operates as a digital automotive marketplace that connects local car dealers to consumers in the United States. The company offers a suite of digital solutions that creates connections between individuals researching cars or looking to purchase a car with car dealerships and automotive original equipment manufacturers.

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