Cars.com Inc. (CARS) Tops Q4 EPS by 27c

Cars.com Inc. (NYSE: CARS) reported Q4 EPS of $0.50, $0.27 better than the analyst estimate of $0.23. Revenue for the quarter came in at $164.3 million versus the consensus estimate of $166.77 million.

Outlook

Our achievements in 2018 put into place transformative product, technology, sales and go-to-market changes essential to underpin a successful, differentiated strategy. Increased investments in programs centered around dealer success will be instrumental to convert our growing traffic to automobile sales to dealers and overcome the impact of starting 2019 with a lower dealer count. In 2019, we expect to benefit from the rapid scaling of Dealer Inspire revenue and an improved dealer count despite a cyclical downturn in new car sales. In 2020 and 2021, which will include the full year benefit of an increasing dealer count and cost savings, combined with additional digital solutions sales as well as the contractual uplift from conversion of the remaining affiliates, we expect increased revenue, Adjusted EBITDA and Free Cash Flow.

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.

For earnings history and earnings-related data on Cars.com Inc. (CARS) click here.

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