(RTTNews) - Shares of Cars.com, LLC (CARS), an online marketplace and solutions provider for the automotive industry, are rising more than 20 percent or $1.64 in Thursday's morning trade at $9.65 after the company projected third-quarter revenue above analysts' estimates.
Cars.com said Wednesday that based on preliminary information, it expects third-quarter revenue of about $142 to $144 million and adjusted EBITDA margin between 33 percent and 34 percent. The company projects net loss for the third quarter between $10 million and $12 million, primarily due to a non-cash charge of about $31 million. Analysts polled by Thomson Reuters have a consensus estimate for earnings of $0.38 per share for the quarter on revenues of $137.48 million.
Cars.com added that it capitalized on consumers' desire to connect with dealers digitally, leading to all-time low cancellation rates and net growth of nearly 100 dealer customers during the quarter.
Cars.com has traded in a range of $3.25 to $13.55 in the past 52 weeks.