Last week, you might have seen that CarGurus, Inc. (NASDAQ:CARG) released its quarterly result to the market. The early response was not positive, with shares down 5.1% to US$33.34 in the past week. Revenues were US$239m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$0.45 were also better than expected, beating analyst predictions by 10%. This is an important time for investors, as they can track a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
After the latest results, the 14 analysts covering CarGurus are now predicting revenues of US$990.2m in 2026. If met, this would reflect a reasonable 6.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 26% to US$2.00. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$986.9m and earnings per share (EPS) of US$1.98 in 2026. So it’s pretty clear that, although the analysts have updated their estimates, there’s been no major change in expectations for the business following the latest results.
See our latest analysis for CarGurus
There were no changes to revenue or earnings estimates or the price target of US$39.92, suggesting that the company has met expectations in its recent result. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on CarGurus, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$33.00 per share. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting CarGurus’ growth to accelerate, with the forecast 5.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, CarGurus is expected to grow slower than the wider industry.
Read More: Here’s What Analysts Think Will Happen Next
