CARG - Why CarGurus Is Plunging 24% Despite Topping Estimates
Shares of CarGurus (NASDAQ: CARG), a global online automotive marketplace, are plunging more than 24% lower Friday morning despite the company beating analysts' top- and bottom-line estimates during the fourth quarter.
Starting from the top, revenue increased 25% to $158.2 million compared to the prior year, easily topping analysts' estimates of $154.6 million. Fourth-quarter adjusted earnings per share checked in at $0.17, also topping analysts' estimates of $0.13 per share.
"CarGurus finished 2019 with a strong fourth quarter," said Langley Steinert, founder and CEO of CarGurus, in a press release. "Our U.S. marketplace saw continued traffic and lead growth in the fourth quarter, and for the full-year 2019 we generated over 65 million connections and over 38 million leads, supporting what we believe is industry-leading ROI for our paying dealers."