CarGurus had a better quarter, but all eyes are on its weak guidance.
Shares of CarGurus Inc. fell 10% in the extended session Monday after investors focused on the online car sales platform’s weak current-quarter guidance after a better-than-expected quarter.
CarGurus CARG,
It lost $23.7 million, or 21 cents per share, in the fourth quarter, compared with a profit of $159 million, or 20 cents per share, in the year-ago period.
Adjusted for one-time items, the company earned 35 cents per share. Sales fell 22% to $223.1 million.
Analysts polled by FactSet expected the company to report earnings of 34 cents per share on revenue of $220.1 million.
CarGurus reported first-quarter total revenue of between $201 million and $221 million, below the FactSet consensus for revenue of about $240 million. Likewise, adjusted EPS is expected to be between 24 cents and 29 cents, compared to expectations for 31 cents per share, according to FactSet.
“In 2024, we will continue to invest in growth initiatives while maintaining financial discipline and prioritizing operational excellence and efficient capital allocation,” CEO Jason Trevisan said in a statement.
CarGurus’ results show that Carvana Inc. It comes on the heels of CVNA’s quarterly results.
We also sell used cars online. Carvana not only offers used and new cars, but also provides a way for consumers to research cars that may be of interest to them.
Carvana reported a smaller quarterly loss than Wall Street expected and said it was on track for growth this year despite macroeconomic conditions.
CarGurus’ stock price has risen 40% over the past 12 months, compared with a roughly 28% rise for the S&P 500 index SPX..
