We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is EverQuote (EVER) Down 16.9% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 16.9% 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 its most recent earnings report in order to get a better handle on the important drivers.
EverQuote Q2 Earnings Top on Solid Automotive Revenues
EverQuote, Inc. reported second-quarter 2024 operating net income per share of 17 cents, which beat the Zacks Consensus Estimate by 325%. Moreover, the bottom line rebounded from the year-ago quarter’s loss of 40 cents per share.
Total revenues of $117 million beat the Zacks Consensus Estimate by 13.6%. The top line surged 72.3% year over year. The quarterly results reflected solid performances across both Automotive insurance and Home and Renters insurance verticals and increased variable marketing margin, partially offset by higher expenses.
Behind the Headlines
Revenues in the Automotive insurance vertical doubled year over year to $102.6 million. The Zacks Consensus Estimate was pegged at $85 million. Our estimate was $88.9 million.
Revenues in the Home and Renters insurance vertical totaled $13.9 million, which increased 29.5% year over year. The Zacks Consensus Estimate was pegged at $13.2 million. Our estimate was $12.7 million.
Revenues in the Other insurance vertical totaled $0.63 million, which plunged 91.6% year over year. The Zacks Consensus Estimate was pegged at $0.84 million and our estimate was $0.8 million.
Total costs and operating expenses increased 36.2% to $110.8 million, mainly due to higher sales and marketing, general and administrative expenses. Our estimate was $94.4 million. EverQuote’s variable marketing margin increased 47.9% year over year in the quarter under review to $36.4 million. Our estimate was negative $32.6 million.
Adjusted EBITDA was $2.9 million against the year-ago quarter’s adjusted EBITDA loss of $2.1 million. Our estimate was negative $8.3 million.
Financial Update
EverQuote exited the second quarter with cash and cash equivalents of $60.9 million, up 60.4% from 2023-end. Total assets were $157.9 million, up 42.4% from 2023-end. Total stockholders' equity increased 24.6% to $100.8 million. Cash from operations was $12.4 million in the second quarter of 2024, which surged more than three-fold year over year.
Q3 Guidance
EverQuote estimates revenues in the range of $137-$143 million and a variable marketing margin in the band of $38.5-$41.5 million. The company expects adjusted EBITDA between $14 million and $17 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 11300% 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 D on the value side, putting it in the bottom 40% 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 10.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
The Hartford reported revenues of $4.46 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $2.50 for the same period compares with $1.88 a year ago.
The Hartford is expected to post earnings of $2.46 per share for the current quarter, representing a year-over-year change of +7.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.6%.
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 C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is EverQuote (EVER) Down 16.9% Since Last Earnings Report?
A month has gone by since the last earnings report for EverQuote (EVER - Free Report) . Shares have lost about 16.9% 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 its most recent earnings report in order to get a better handle on the important drivers.
EverQuote Q2 Earnings Top on Solid Automotive Revenues
EverQuote, Inc. reported second-quarter 2024 operating net income per share of 17 cents, which beat the Zacks Consensus Estimate by 325%. Moreover, the bottom line rebounded from the year-ago quarter’s loss of 40 cents per share.
Total revenues of $117 million beat the Zacks Consensus Estimate by 13.6%. The top line surged 72.3% year over year. The quarterly results reflected solid performances across both Automotive insurance and Home and Renters insurance verticals and increased variable marketing margin, partially offset by higher expenses.
Behind the Headlines
Revenues in the Automotive insurance vertical doubled year over year to $102.6 million. The Zacks Consensus Estimate was pegged at $85 million. Our estimate was $88.9 million.
Revenues in the Home and Renters insurance vertical totaled $13.9 million, which increased 29.5% year over year. The Zacks Consensus Estimate was pegged at $13.2 million. Our estimate was $12.7 million.
Revenues in the Other insurance vertical totaled $0.63 million, which plunged 91.6% year over year. The Zacks Consensus Estimate was pegged at $0.84 million and our estimate was $0.8 million.
Total costs and operating expenses increased 36.2% to $110.8 million, mainly due to higher sales and marketing, general and administrative expenses. Our estimate was $94.4 million. EverQuote’s variable marketing margin increased 47.9% year over year in the quarter under review to $36.4 million. Our estimate was negative $32.6 million.
Adjusted EBITDA was $2.9 million against the year-ago quarter’s adjusted EBITDA loss of $2.1 million. Our estimate was negative $8.3 million.
Financial Update
EverQuote exited the second quarter with cash and cash equivalents of $60.9 million, up 60.4% from 2023-end. Total assets were $157.9 million, up 42.4% from 2023-end. Total stockholders' equity increased 24.6% to $100.8 million.
Cash from operations was $12.4 million in the second quarter of 2024, which surged more than three-fold year over year.
Q3 Guidance
EverQuote estimates revenues in the range of $137-$143 million and a variable marketing margin in the band of $38.5-$41.5 million. The company expects adjusted EBITDA between $14 million and $17 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
The consensus estimate has shifted 11300% 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 D on the value side, putting it in the bottom 40% 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 10.5%. The company reported its results for the quarter ended June 2024 more than a month ago.
The Hartford reported revenues of $4.46 billion in the last reported quarter, representing a year-over-year change of +9.4%. EPS of $2.50 for the same period compares with $1.88 a year ago.
The Hartford is expected to post earnings of $2.46 per share for the current quarter, representing a year-over-year change of +7.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.6%.
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 C.