TrueCar, Inc. shares moved more than 7% lower in pre-market hours despite the company reporting better-than-expected fourth quarter financial results. Revenue rose 12.2% to $83.1 million – beating consensus estimates by $1.3 million – while net income of five cents per share beat consensus forecasts calling for an break-even quarter. While these results exceeded analyst expectations, weak guidance for the first quarter sent shares lower.
During the first quarter, the company expects revenue of between $80 million and $82 million, which was lower than analyst expectations averaging $82.27 million. The company’s full-year revenue guidance was for a range of $360 million to $365 million, which was still in line with analyst estimates that averaged $362.83 million. In November, the stock had plunged more than 30% after a mixed third quarter and lower guidance. RBC analysts also lowered their price target on TrueCar shares at the time from $23.00 to $18.00 but retained an Outperform rating following the earnings report. (See also: Buying a New Car: Websites, Tools and Apps to Use.)
TrueCar shares moved lower in pre-market hours following its fourth quarter results, but traders will be watching these key levels. …read more
Read more here: TrueCar Stock Set to Test Support After Weak Guidance