RumbleON (NASDAQ:RMBL) shares dived almost 35% on November 9 following dismal Q3 earnings and also a cut in its full-year outlook.
Don't Miss out on Research Tools:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Based in Texas, RumbleOn provides a technology-based omnichannel platform that aggregates and distributes pre-owned vehicles.
A Snapshot of RumbleON’s Q3-2022 Results
The Q3 adjusted earnings of $0.27 per share significantly lagged analysts’ estimated loss of $0.78 per share. Further, it was much worse compared to the EPS of $1.20 reported in the prior-year period.
Meanwhile, revenues more than doubled year-over-year to $470.3 million and lagged consensus estimates of $487.9 million.
RumbleOn’s CEO Marshall Chesrown commented, “While demand for our offering is proving resilient, certain demand trends are beginning to surface, for the most part in regards to vehicle type and price point.”
He further added, “Our overall results were also impacted by our strategic decision to purchase fewer automotive units during the quarter, due to what we see as structural changes in the post-Covid wholesale auto business.”
Based on the ongoing headwinds, management reduced the guidance range for the full year 2022. For FY22, total revenue is now expected to range between $1.85 – $1.90 billion.
Is RumbleON a Good Stock to Buy?
As per TipRanks, analysts are both cautious and optimistic about the RumbleON stock and have a Moderate Buy consensus rating, which is based on one Buy and one Hold. RumbleON’s average price forecast of $38 implies 266.8% upside potential.
Read full Disclosure
