Why TrueCar Stock Is Soaring Over 30% on Friday
Shares of TrueCar (NASDAQ: TRUE), a digital automotive marketplace connecting consumers and its network of certified dealers, were soaring over 31% Friday morning after the company topped earnings estimates and announced two key developments.
TrueCar beat expectations on the top and bottom lines. Revenue declined a significant 28.8% versus the prior year, to $62.7 million, which was still ahead of analysts' estimates of $55.2 million. On the bottom line, $0.04 in adjusted earnings per share was far ahead of analysts' estimates of a $0.07 loss per share.
Other metrics showed mixed results. Average monthly unique users increased 14.5% to 8.3 million, while units sold declined 24.3%, and monetization, or average transaction revenue per unit, declined from the prior year's $333 to $290. "We've just turned the corner on what was truly an unprecedented second quarter," CEO Mike Darrow said in a press release. "In light of the situation around us, we are pleased by our results, highlighted by revenue and Adjusted EBITDA well above expectations."
Source Fool.com
