Shares of EverQuote Inc. (EVER) tumbled 10.71% in pre-market trading on Tuesday, following the company's mixed second-quarter earnings report and a price target cut by JP Morgan. The significant drop comes as investors react to the insurance marketplace provider's financial results and future outlook.
EverQuote reported second-quarter earnings of $0.39 per diluted share after the market close on Monday, surpassing analyst expectations of $0.35 per share. However, the company's revenue for the quarter fell short of estimates. EverQuote posted revenue of $156.6 million, up from $117.1 million a year earlier, but slightly below the $157.2 million analysts had projected.
Adding to investor concerns, JP Morgan lowered its price target for EverQuote from $30.00 to $29.00. This adjustment, coupled with the revenue miss, appears to have triggered a sell-off in the pre-market session. The company's third-quarter revenue guidance of $163 million to $169 million, which is in line with analyst expectations of $166.7 million, seemingly failed to alleviate investor worries about the company's growth trajectory.
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