Shares of CarGurus Inc. fell. rose 10% in the extended session on Monday after investors looked beyond a better-than-expected quarter for the online car selling platform to focus on weaker current quarter guidance.
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It lost $23.7 million, or 21 cents per share, in the fourth quarter, in contrast to a gain of $159 million, or 20 cents per share, in the same period last year.
Adjusted for one-time items, the company earned 35 cents per share. Revenue fell 22% to $223.1 million.
Analysts surveyed by FactSet expected the company to report earnings of 34 cents per share on sales of $220.1 million.
CarGurus guided total first-quarter revenue of between $201 million and $221 million, below the FactSet consensus for revenue of about $240 million. Likewise, it called for a revised EPS of between 24 cents and 29 cents, against expectations of 31 cents per share, according to FactSet.
“Looking to 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 came on the heels of Carvana Inc.'s quarterly results. CVNA,
Which also sells used cars online. Carvana offers used and new cars as well as ways for consumers to research cars they may be interested in.
Carvana reported a smaller quarterly loss than Wall Street expected and said it was on track to grow this year despite macroeconomic conditions.
CarGurus shares are up 40% in the past 12 months, compared with an advance of about 28% for the S&P 500 SPX..
