CarGurus (CARG) shares fell 6.5% in Friday trading even after the company reported Q1 results that edged above Wall Street estimates.

Non-GAAP earnings rose to $0.58 per diluted share from $0.48 a year earlier, the company said Thursday. Analysts polled by FactSet expected $0.57.

Revenue in the three months ended March 31 rose to $243.6 million from $212.2 million a year earlier. Analysts surveyed by FactSet expected $243.1 million.

Q1 results also showed a 23% drop in GAAP net income, $19.7 million in impairment charges, higher operating expenses and narrower margins.

The company expects Q2 non-GAAP EPS of $0.57 to $0.64 on revenue of $247 million to $252 million. Analysts polled by FactSet expect EPS of $0.61 on revenue of $249.6 million.

Price: 35.68, Change: -2.48, Percent Change: -6.50