CarGurus Inc. shares fell 10% in Monday’s extended session after investors looked past a better-than-expected quarter for the online car-selling platform to focus on the current quarter’s weaker forecast.
CarGurus CARG,
it lost $23.7 million, or 21 cents a share, in the fourth quarter, compared with earnings of $159 million, or 20 cents a share, in the same period a year ago.
Excluding one-time items, the company earned 35 cents per share. Revenue fell 22% to $223.1 million.
Analysts polled by FactSet had expected the company to report earnings of 34 cents a share on revenue of $220.1 million.
CarGurus posted total first-quarter revenue of $201 million to $221 million, below the FactSet consensus of revenue of about $240 million. Likewise, adjusted earnings per share were expected to range from 24 cents to 29 cents, according to FactSet, as opposed to expectations of 31 cents per share.
“As we look to 2024, we will continue to invest in growth initiatives while maintaining financial discipline and prioritizing operational excellence and efficient capital allocation,” Chief Executive Officer Jason Trevisan said in a statement.
CarGurus’ results came on the heels of Carvana Inc. CVNA’s quarterly results,
which also sells used cars online. Carvana offers used and new cars, as well as ways for consumers to research cars they might be interested in.
Carvana reported a smaller quarterly loss than Wall Street expected and said it is on track for growth this year despite macroeconomic conditions.
CarGurus shares have risen 40% over the past 12 months, compared to a gain of about 28% for the S&P 500 SPX index.