CarGurus Inc. (CARG) stock soared 7.87% in pre-market trading on Friday, following the company's release of better-than-expected first-quarter earnings and an optimistic second-quarter forecast. The online automotive marketplace platform demonstrated resilience in a challenging market environment, attracting investor attention.
CarGurus reported adjusted earnings of $0.46 per diluted share for Q1, surpassing analysts' expectations of $0.44 and showing significant growth from $0.34 in the same period last year. While revenue slightly missed estimates at $225.2 million, it still represented an increase from $215.8 million in the previous year. The company's ability to improve profitability despite modest revenue growth has impressed investors.
Adding to the positive sentiment, CarGurus provided an upbeat outlook for the second quarter. The company expects Q2 adjusted earnings between $0.52 and $0.58 per share, well above the analyst consensus of $0.47. This forward-looking guidance suggests continued momentum in the company's operations and financial performance. The stock's pre-market surge reflects investor optimism about CarGurus' future prospects and its ability to navigate the competitive automotive e-commerce landscape.
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