Cars.com news for Monday concerning its earnings results and a strategic review update has CARS stock falling hard.
Let’s start with the Cars.com (NYSE:CARS) earnings report for the second quarter of 2019. This has the company reporting earnings per share of 30 cents on revenue of $148.20 million. For comparison, the company reported earnings per share and revenue of 48 cents and $168.50 million in the same period of the year prior.
That’s a mixed result for the online car listing company’s second quarter of the year. The revenue comes in well below Wall Street’s estimate of $160.50 million for the quarter. However, the earnings per share are sitting comfortably above analysts’ estimate of 9 cents for the period.
The Cars.com news release also includes its outlook for the full year of 2019. It is expecting revenue for the year to be down 6% to 9% from 2018. It is also looking for Adjusted EBITDA margin to be between 27% and 29% for the year.
Another bit of Cars.com news comes in the form of a strategic review update. The company has completed this review and it says that there was no actionable option that was available during the review process.
“After consultation with our financial and legal advisors, the Board has concluded that the best interests of shareholders are served by continuing to focus on our strategic plan and opportunities to drive growth and shareholder returns as an independent public company,” Scott Forbes, Chairman of the Board, said in a statement.
CARS stock was down 33% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
