Cars.com Shares in Fast Lane After Positive Preliminary Results


© Reuters.

By Christiana Sciaudone

biedex.com — Cars.com shares revved as much as 23% higher after strong preliminary results at the close Wednesday prompted at least two analyst upgrades.

 

The company said third quarter revenue would be between $142 million and $144 million, while analysts were expecting $137.5 million. Cars.com Inc (NYSE:) also said it expects a net loss between $10 million and $12 million, primarily due to a $31 million non-cash charge.

 

B. Riley raised the stock to buy from neutral and upped its price target to $11 from $9, with analyst Lee Krowl noting that the results pointed to better dealer retention. The shares currently trade around $9.30. Craig-Hallum also upgraded the stock, moving it to a buy from hold.

 

Rival TrueCar (NASDAQ:) Inc. was also higher on the news, jumping as much as 11%. It’s not expected to release its third quarter results until next month.

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