Cars.Com Stock Price, News & Analysis

Cars.com Inc. (NYSE: CARS) announced plans to offer $400 million in senior unsecured notes due 2028. The offering is contingent on market conditions and will be backed by guarantees from the company's subsidiaries. Proceeds will be utilized for repaying existing credit facility borrowings. The notes will only be sold to qualified institutional buyers and specific non-U.S. persons, thus they won't be registered under U.S. securities laws. Cars.com operates as a digital marketplace, enhancing connections between car shoppers and sellers.

Cars.com Inc. (CARS) reported strong preliminary results for Q3 2020, expecting revenue between $142 million and $144 million and an Adjusted EBITDA margin of 33% to 34%. The company experienced growth in Adjusted EBITDA and nearly 100 new dealer customers while maintaining low cancellation rates. However, a net loss of $10 to $12 million is anticipated, largely due to a $31 million noncash tax adjustment. CARS ended the quarter with approximately $44 million in cash and $598 million in debt.

Cars.com (NYSE: CARS) analyzed the impact of the 2020 U.S. presidential election on the automotive market, noting that vehicle platforms last an average of 6.7 years, making immediate changes unlikely. The report covers three focus areas: the U.S.-Mexico-Canada Agreement's long-term manufacturing effects, differences in electric vehicle (EV) policies between candidates, and the influence of low gas prices on vehicle demand. Biden's plans include restoring EV tax credits and expanding charging infrastructure, while Trump's administration has rolled back environmental regulations, impacting the potential growth of EVs.

Cars.com (CARS) reports a significant shift in consumer car buying behavior amid the COVID-19 pandemic. Research indicates that 61% of recent buyers prefer home delivery from local dealerships, reflecting a 35% increase in such services since March. Online vehicle transactions surged, with 57% of recent buyers completing most purchases digitally. The demand for virtual services has risen, leading to a 30% increase in engagement for dealerships offering these options. This trend highlights the evolving landscape of automotive sales as consumers prioritize contactless experiences.

Cars.com (NYSE: CARS) reports significant shifts in commuting patterns, revealing that as of August 2020, 66% of Americans are saving 30 minutes or more daily due to remote work. The study finds that 43% of Americans distrust public transport, leading to a 62% increase in personal vehicle use. Notably, 21% of commuters have purchased cars in the last six months, with 57% attributing this to the pandemic. Additionally, 35% anticipate commuting less even after returning to the office, indicating long-term changes in transportation behavior.

Cars.com (CARS) reported Q2 2020 revenue of $102.0 million, a 31% decrease year over year due to invoice credits given to customers. The GAAP net loss was $24.6 million, compared to a loss of $6.0 million in Q2 2019. Adjusted net income dropped to $8.0 million, down from $20.0 million. Despite a 5% decline in dealer customers, unique monthly visitors increased by 6%. Operational efficiencies led to a 10% traffic growth, with mobile traffic rising to 75%. The company maintained liquidity with $232.2 million available. Outlook remains uncertain due to COVID-19 impacts.