Online used car auction platform ACV Auctions (NASDAQ: ACVA) will be reporting earnings this Wednesday after market close. Here’s what investors should know.
ACV Auctions beat analysts’ revenue expectations last quarter, reporting revenues of $183.6 million, up 15.1% year on year. It was a slower quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter slightly missing analysts’ expectations.
Is ACV Auctions a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting ACV Auctions’s revenue to grow 10.5% year on year, slowing from the 25.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ACV Auctions has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at ACV Auctions’s peers in the online marketplace segment, some have already reported their Q1 results, giving us a hint as to what we can expect. EverQuote delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 5.7%, and Etsy reported revenues up 3.1%, topping estimates by 2.4%. Etsy traded up 2.1% following the results.
Read our full analysis of EverQuote’s results here and Etsy’s results here.
There has been positive sentiment among investors in the online marketplace segment, with share prices up 11.1% on average over the last month. ACV Auctions is up 13.1% during the same time and is heading into earnings with an average analyst price target of $8.98 (compared to the current share price of $5.31).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
