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Why Is EverQuote (EVER) Down 12% Since Last Earnings Report?
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A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 12% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EverQuote due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
EverQuote Q1 Earnings Top Estimates, Revenues Fall Y/Y
EverQuote delivered first-quarter 2024 earnings per share of 5 cents in contrast to the Zacks Consensus Estimate of a loss of 7 cents as well as the year-ago quarter’s loss of 8 cents per share.
Though the top line of $91 million declined 16.5% year over year, it beat the Zacks Consensus Estimate by 12.8%.
Both the metrics exceeded expectations, likely reflecting the early stages of auto carrier recovery.
Behind the Headlines
Revenues from the Automotive insurance vertical were $77.5 million, down 13.6% year over year. The Zacks Consensus Estimate was pegged at $67 million. Our estimate was $64.6 million.
Revenues in the Home and Renters insurance vertical totaled $12.7 million, which increased 34.2% year over year. The Zacks Consensus Estimate was pegged at $13.3 million. Our estimate was $15.3 million.
Revenues in the Other insurance vertical totaled $0.1 million, which plunged 16.3% year over year.
Total costs and operating expenses decreased 20% to $89.3 million, mainly due to the cost of revenues and lower sales and marketing, general and administrative and research and development expenses. Our estimate was $77.5 million.
EverQuote’s variable marketing margin decreased 13.4% year over year in the quarter under review to $30.8 million. Our estimate was $27.6 million, while the Zacks Consensus Estimate was pegged at $26.4 million.
Adjusted EBITDA was $7.6 million, up 41.2% year over year. Our estimate was $4.5 million.
Financial Update
EverQuote exited the first quarter of 2024 with cash and cash equivalents of $48.6 million, up 28% from 2023-end. Total assets were $135.4 million, up 22.1% from 2022-end. Total stockholders' equity increased 9.2% to $88.3 million.
Cash from operations was $10.4 million in the reported quarter versus an outflow of $1.2 million in the year-ago quarter.
Q2 Guidance
EverQuote estimates revenues in the range of $100-$105 million, a variable marketing margin of $31-$33 million and adjusted EBITDA in the range of $7 million-$9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 134.92% due to these changes.
VGM Scores
At this time, EverQuote has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
EverQuote is part of the Zacks Insurance - Multi line industry. Over the past month, The Hartford (HIG - Free Report) , a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended March 2024 more than a month ago.
The Hartford reported revenues of $4.34 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $2.34 for the same period compares with $1.68 a year ago.
For the current quarter, The Hartford is expected to post earnings of $2.36 per share, indicating a change of +25.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Hartford. Also, the stock has a VGM Score of A.
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Why Is EverQuote (EVER) Down 12% Since Last Earnings Report?
A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 12% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is EverQuote due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
EverQuote Q1 Earnings Top Estimates, Revenues Fall Y/Y
EverQuote delivered first-quarter 2024 earnings per share of 5 cents in contrast to the Zacks Consensus Estimate of a loss of 7 cents as well as the year-ago quarter’s loss of 8 cents per share.
Though the top line of $91 million declined 16.5% year over year, it beat the Zacks Consensus Estimate by 12.8%.
Both the metrics exceeded expectations, likely reflecting the early stages of auto carrier recovery.
Behind the Headlines
Revenues from the Automotive insurance vertical were $77.5 million, down 13.6% year over year. The Zacks Consensus Estimate was pegged at $67 million. Our estimate was $64.6 million.
Revenues in the Home and Renters insurance vertical totaled $12.7 million, which increased 34.2% year over year. The Zacks Consensus Estimate was pegged at $13.3 million. Our estimate was $15.3 million.
Revenues in the Other insurance vertical totaled $0.1 million, which plunged 16.3% year over year.
Total costs and operating expenses decreased 20% to $89.3 million, mainly due to the cost of revenues and lower sales and marketing, general and administrative and research and development expenses. Our estimate was $77.5 million.
EverQuote’s variable marketing margin decreased 13.4% year over year in the quarter under review to $30.8 million. Our estimate was $27.6 million, while the Zacks Consensus Estimate was pegged at $26.4 million.
Adjusted EBITDA was $7.6 million, up 41.2% year over year. Our estimate was $4.5 million.
Financial Update
EverQuote exited the first quarter of 2024 with cash and cash equivalents of $48.6 million, up 28% from 2023-end. Total assets were $135.4 million, up 22.1% from 2022-end. Total stockholders' equity increased 9.2% to $88.3 million.
Cash from operations was $10.4 million in the reported quarter versus an outflow of $1.2 million in the year-ago quarter.
Q2 Guidance
EverQuote estimates revenues in the range of $100-$105 million, a variable marketing margin of $31-$33 million and adjusted EBITDA in the range of $7 million-$9 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 134.92% due to these changes.
VGM Scores
At this time, EverQuote has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise EverQuote has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
EverQuote is part of the Zacks Insurance - Multi line industry. Over the past month, The Hartford (HIG - Free Report) , a stock from the same industry, has gained 1.3%. The company reported its results for the quarter ended March 2024 more than a month ago.
The Hartford reported revenues of $4.34 billion in the last reported quarter, representing a year-over-year change of +10.8%. EPS of $2.34 for the same period compares with $1.68 a year ago.
For the current quarter, The Hartford is expected to post earnings of $2.36 per share, indicating a change of +25.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for The Hartford. Also, the stock has a VGM Score of A.