What happened
Shares of online auto sales marketplace CarGurus, Inc. (NASDAQ: CARG) were sharply higher on Wednesday following a second-quarter earnings result that exceeded Wall Street's expectations.
As of 12:00 p.m. EDT on Wednesday, CarGurus' stock was trading around $54.40, up 19.3% from Tuesday's close.
So what
Massachusetts-based CarGurus, which went public last October , said that its net income excluding special items (or what it calls "non-GAAP net income") rose 60%, to $6.9 million in the second quarter of 2018. Revenue increased 45% to $110.3 million. The story is simple and good: Business boomed. CarGurus' total number of paying dealer partners rose 20% from the year-ago quarter, and its website traffic was up 56%.
On a per-share basis, excluding special items, CarGurus earned $0.06 per share. That was up 50% from a year ago, and it soundly beat Wall Street's consensus $0.04 per-share estimate.
Now what
CarGurus also boosted its full-year guidance. It now expects:
- Revenue between $436 million and $438 million (prior guidance: $415 million to $418 million)
- Non-GAAP operating income between $28.5 million to $30.5 million (prior guidance: $25 million to $28 million)
- Non-GAAP earnings per share of $0.22 to $0.23 (prior guidance: $0.19 to $0.21)
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John Rosevear has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
