Cars.com (NYSE:CARS) earnings for first quarter of 2020 have CARS stock screaming lower on Thursday. This is despite its adjusted earnings per share (EPS) of 32 cents and revenue of $148.1 million. These are both better than Wall Street’s estimates of 24 cents per share and revenue of $144.27 million.
Here are some additional details worth noting from the most recent Cars.com earnings report.
- Adjusted per-share earnings are up 3.2% from 31 cents during the same period of the year prior.
- Revenue for the quarter comes in 4% lower than the $154.2 million in the first quarter of 2019.
- The Cars.com earnings report also has net loss coming in at $787.4 million.
- That’s way worse than its net loss of $9 million from the same time last year.
Jandy Tomy, interim CFO of Cars.com, said this in the Q1 earnings report:
“Results in the second quarter will be impacted by our three-month discount program and any ongoing impact of prevailing economic conditions. To mitigate this impact, we took decisive actions including significant cost reductions, as well as a draw-down on our revolving credit facility in order to provide additional flexibility and liquidity during a restricted movement period of unknown duration.”
Cars.com doesn’t include specific numbers for its 2020 guidance, but it doesn’t look good. It’s expecting the novel coronavirus to have a negative impact on its “operations, cash flow and financial position.”
CARS stock was down 19.4% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
