Cargurus Inc. (CARG) experienced a steep sell-off in the pre-market trading session on Friday, with its stock plummeting 14.07%. This sharp decline followed the company's fourth-quarter 2024 earnings report, which missed revenue expectations despite beating on earnings per share (EPS).
The online automotive marketplace reported revenue of $228.54 million for the quarter, falling short of analysts' consensus estimate of $232.51 million. However, Cargurus delivered adjusted EPS of $0.55, surpassing the expected $0.52 and marking a significant improvement from the same quarter last year when the company reported EPS of $0.35.
Despite the mixed results, analysts at Needham maintained their "Buy" rating on Cargurus and reiterated a price target of $45.00 per share, indicating their belief in the company's long-term growth prospects. Nevertheless, investors appeared to focus more on the revenue miss, driving the stock sharply lower in early trading.
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