Charter Communications earnings missed by $0.40, revenue was in line with estimates
In a challenging market environment, Cars.com Inc. stock has touched a 52-week low, dipping to $10.8, marking a significant drop from its peak of $21.24. According to InvestingPro analysis, the company maintains strong fundamentals with a healthy current ratio of 1.83 and management actively buying back shares. This price level reflects a significant downturn for the online automotive marketplace, which has seen its shares struggle over the past year. The 1-year change data paints a stark picture, with Cars.com Inc. experiencing a substantial decline of -36.44% in its stock value. Despite the decline, analysts maintain a positive outlook with price targets ranging from $13.50 to $25.00, suggesting potential upside. Investors are closely monitoring the company’s performance, seeking signs of a turnaround that could signal a rebound from this low point. For comprehensive analysis and 12 additional ProTips about Cars.com, including detailed valuation metrics and growth prospects, explore the full research report available on InvestingPro.
In other recent news, Cars.com reported fourth-quarter earnings that did not meet analyst expectations, with adjusted earnings per share at $0.49 against the anticipated $0.56. The company’s revenue for the quarter reached $180.43 million, falling short of the expected $183.9 million. Looking forward, Cars.com projected first-quarter revenue between $178 million and $181 million, below the $184.9 million analysts predicted, and full-year 2025 revenue guidance of $745 million to $755 million, which is also lower than the $757.7 million consensus estimate. Despite these misses, CEO Alex Vetter noted strong growth in OEM and National revenues and highlighted a robust adjusted EBITDA margin of nearly 31%.
DA Davidson analysts responded by reducing their price target for Cars.com to $14.50 from $21.00, while maintaining a Buy rating. The analysts pointed out that Cars.com’s core Dealer revenues were below expectations, although high-margin OEM and National advertising revenues outperformed. The company also announced a new $250 million share repurchase authorization. For the full year 2024, Cars.com achieved record revenue of $719.2 million, marking a 4% increase year-over-year, though net income decreased due to a previous tax valuation allowance release. Investors are closely monitoring the company’s outlook and potential for growth acceleration later in the year.
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