CarGurus Inc. (CARG) stock is soaring 13.31% in pre-market trading, building on the momentum from its after-hours performance following the release of its impressive first-quarter earnings report and optimistic second-quarter guidance.

The online automotive marketplace reported Q1 adjusted earnings of $0.46 per diluted share, surpassing both the previous year's $0.34 and analysts' expectations of $0.44. While revenue for the quarter slightly missed estimates at $225.2 million, it still showed growth compared to $215.8 million a year earlier. This strong performance demonstrates CarGurus' ability to improve profitability despite modest revenue growth.

Investors are particularly encouraged by CarGurus' robust Q2 outlook. The company expects adjusted earnings of $0.52 to $0.58 per share on revenue of $222 million to $242 million, exceeding analysts' projections of $0.47 per share and $233.2 million in revenue. This positive forecast has significantly boosted investor confidence in CarGurus' business model and future prospects in the competitive online car marketplace sector. Adding to the bullish sentiment, JP Morgan raised its target price for CarGurus from $34 to $36, further fueling the stock's pre-market rally.