Earnings To Watch: ACV Auctions (ACVA) Reports Q2 Results Tomorrow

ACVA Cover Image

Online used car auction platform ACV Auctions (NASDAQ: ACVA) will be announcing earnings results this Monday after the bell. Here’s what you need to know.

ACV Auctions met analysts’ revenue expectations last quarter, reporting revenues of $182.7 million, up 25.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EBITDA guidance for next quarter missing analysts’ expectations. It reported 208,025 units sold, up 19.1% year on year.

Is ACV Auctions a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ACV Auctions’s revenue to grow 22.1% year on year to $196.1 million, slowing from the 29.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

ACV Auctions Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ACV Auctions has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average.

Looking at ACV Auctions’s peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Shutterstock delivered year-on-year revenue growth of 21.3%, beating analysts’ expectations by 7.5%, and eHealth reported a revenue decline of 7.7%, topping estimates by 31%. Shutterstock’s stock price was unchanged after the resultswhile eHealth was up 45.7%.

Read our full analysis of Shutterstock’s results here and eHealth’s results here.

There has been positive sentiment among investors in the online marketplace segment, with share prices up 3.8% on average over the last month. ACV Auctions is down 11% during the same time and is heading into earnings with an average analyst price target of $22.81 (compared to the current share price of $14.33).

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