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.
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.
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)