CarGurus' stock gains more than 11% after online platform says it is becoming 'integral' for dealers

By Claudia Assis

CarGurus also guides for better adjusted profit in the current quarter

CarGurus Inc. shares rallied more than 11% in the after-hours session Thursday after the online car-sales platform posted better-than-expected quarterly results and an adjusted profit guidance that was also above forecast.

CarGurus' platform, services and data insights "are becoming an integral part of our dealers' daily workflow, and continue to drive engagement and long-term retention," Chief Executive Jason Trevisan said.

CarGurus (CARG) lost $68.7 million, or 66 cents a share, in the second quarter, swinging from earnings of $16.4 million, or 12 cents a share, in the year-ago period.

Adjusted for one-time items, however, CarGurus earned 41 cents a share, ahead of FactSet consensus for 34 cents a share.

Revenue fell 9% to $218.7 million, the company said. FactSet consensus called for revenue of $215.8 million.

CarGurus guided for revenue between $212 million and $232 million in the third quarter, with adjusted EPS between 38 cents and 44 cents.

Analysts polled by FactSet expect CarGurus to earn an adjusted 37 cents a share on sales of $220.5 million.

-Claudia Assis

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08-08-24 2015ET

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