Why TrueCar's Shares Are Up 17% Today

What happened

Shares of online car-buying service TrueCar (NASDAQ: TRUE) were sharply higher on Friday after a strong second-quarter earnings report and upbeat guidance for the year.

As of 12:00 p.m. EDT, TrueCar's shares were trading at $13.38, up 17.5% from Thursday's closing price.

So what

TrueCar reported its second-quarter earnings on Thursday afternoon, and there was a lot for investors to like. Adjusted net income rose to $3.2 billion, nearly triple the company's year-ago result , on a 7% increase in revenue driven by a nice jump in income per sale.

The entrance to TrueCar's offices in Santa Monica, California.

Image source: TrueCar.

In fact, all of TrueCar's key operating metrics were up year over year, a sign that CEO Chip Kelly has the company back on course after a rough patch. Another sign: Its guidance for the third quarter and full year calls for more improvements.

TrueCar's adjusted after-tax result met Wall Street's expectations, and investors clearly liked what they heard from management during the earnings call .

Now what

As noted above, TrueCar's results for both the third quarter and full year continued to be upbeat. For both periods, the company expects to soundly beat its year-ago revenue, adjusted EBITDA, and total number of vehicles purchased via its service.

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John Rosevear has no position in any of the stocks mentioned. The Motley Fool recommends TrueCar. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Stocks
Referenced Symbols: TRUE

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