CarGurus Inc. Shares Dip 11%
CarGurus Inc. shares took a hit, dropping over 11% in the extended session on Monday. Despite a positive quarter for the online car-selling platform, investors focused on weaker current-quarter guidance.
Financials at a Glance
In the fourth quarter, CarGurus lost $23.7 million, or 21 cents a share, compared to gains of $159 million, or 20 cents a share, in the same period last year. Adjusted for one-time items, the company earned 35 cents a share with revenue falling 22% to $223.1 million.
Analyst Expectations vs Results
Analysts had anticipated earnings of 34 cents a share on sales of $220.1 million, but CarGurus slightly surpassed these expectations.
Looking Ahead
For the first quarter, CarGurus expects lower total revenue between $201 million and $221 million, not aligned with the FactSet consensus of around $240 million. Similarly, adjusted earnings per share are projected between 24 cents and 29 cents, falling short of the expected 31 cents a share as per FactSet.
CEO's Perspective
Chief Executive Jason Trevisan emphasized the company's focus on growth initiatives alongside financial discipline, operational excellence, and efficient capital allocation moving forward.
Market Comparison
CarGurus' performance contrasts with Carvana Inc. which reported a narrower quarterly loss and indicated growth prospects for the year despite prevailing macroeconomic conditions.
Stock Performance
In the past year, CarGurus shares have risen by 40%, outpacing the S&P 500 index which recorded an increase of around 28%.
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