By Adriano Marchese
CarGurus shares were down ahead of the morning bell on Tuesday after the company’s guidance for the first quarter came in below expectations.
Shares were trading over 13% lower at $20.76.
The digital auto platform said it expects total revenue for its first quarter to be in the range of $201 million to $221 million. The upper end of the limit was below analyst expectations of a rise to $225.1 million, according to FactSet.
CarGurus said that behind the guidance for the period is the pace of paid dealer acquisition, churn, and expansion activity which it has based on recent market and industry trends.
Adjusted earnings per share for the period are expected to be between 24 cents and 29 cents, while analysts expected earnings to be at 29 cents a share.
Adjusted earnings before interest, taxes, depreciation and amortization are expected to be $41 million to $49 million.
Write to Adriano Marchese at [email protected]
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