Cars.com (CARS) reported earnings on Thur 28 Feb 19 (b/o)

** charts before earnings **

 

** charts after earnings **

 Cars.com misses by $0.07, misses on revs; guides FY19 revs below consensus; STrategic Alternatives remains on going 

• Reports Q4 (Dec) earnings of $0.50 per share, excluding non-recurring items, $0.07 worse than the S&P Capital IQ Consensus of $0.57; revenues rose 4.9% year/year to $164.3 mln vs the $166.59 mln S&P Capital IQ Consensus.
  • Average monthly unique visitors of 18.8 million, up 12% year-over-year;
  • Traffic (visits) of 445.3 million, up 11% year-over-year;
  • Mobile traffic accounted for 67% of total traffic compared to 59% in 2017;
  • Dealer customer count of 19,921 as of December 31, 2018, compared with 20,407 as of September 30, 2018 Direct monthly average revenue per dealer ("ARPD") of $2,098, up 6% year-over-year.
• Co issues downside guidance for FY19, sees FY19 revs of (5%)-2% (Approx $628-675 mln) vs. $699.30 mln S&P Capital IQ Consensus. In 2019, based on lower dealer count to start the year, the Company expects a revenue range between a 5% decline and 2% growth with Adjusted EBITDA margins between 30% and 31%. In both 2020 and 2021 the Company expects to achieve year-over-year revenue growth between 5% and 12% and Adjusted EBITDA margins between 32% and 34%. In both years and under all scenarios, the Company expects double-digit Adjusted EBITDA growth.