Shares of online car-buying service TrueCar (NASDAQ:TRUE) were sharply higher on Friday after a strong second-quarter earnings report and upbeat guidance for the year.
As of 12:00 p.m. EDT, TrueCar's shares were trading at $13.38, up 17.5% from Thursday's closing price.
TrueCar reported its second-quarter earnings on Thursday afternoon, and there was a lot for investors to like. Adjusted net income rose to $3.2 billion, nearly triple the company's year-ago result, on a 7% increase in revenue driven by a nice jump in income per sale.
In fact, all of TrueCar's key operating metrics were up year over year, a sign that CEO Chip Kelly has the company back on course after a rough patch. Another sign: Its guidance for the third quarter and full year calls for more improvements.
TrueCar's adjusted after-tax result met Wall Street's expectations, and investors clearly liked what they heard from management during the earnings call.
As noted above, TrueCar's results for both the third quarter and full year continued to be upbeat. For both periods, the company expects to soundly beat its year-ago revenue, adjusted EBITDA, and total number of vehicles purchased via its service.