CarGurus Inc. (CARG) experienced a sharp after-hours decline of 5.86% following the release of its fourth-quarter financial results and first-quarter guidance.
The online automotive marketplace reported Q4 non-GAAP earnings per share of $0.63, matching analyst estimates, while revenue of $241.1 million surpassed expectations. However, investor sentiment turned negative as the company issued Q1 non-GAAP EPS guidance in a range of $0.52 to $0.58, with the midpoint slightly below the consensus estimate of $0.56. The company also announced a new $250 million share repurchase program for 2026.