Investors put pedal to the metal after online car retailer TrueCar Inc (NASDAQ:TRUE) beat estimates for its third quarter result.
The stock jumped 13.93% to close at $10.55 on volume of 3.67 million shares.
Technically, even after Friday’s sharp gap-up opening, TrueCar failed to close above its August high of $11.13 on the daily chart, though it may do so in today’s trading.
If it succeeds, it would establish an uptrend of higher lows and higher highs since it touched a low of $4.01 on the weekly chart in end-August 2015.
TrueCar Inc (NASDAQ:TRUE) Q3 highlights
TrueCar clocked total revenue of $75.1 million in the quarter and reported adjusted EBITDA of $5.8 million, both of which were records for the company.
“In the third quarter, we achieved record results on virtually every metric across the Company,” said Chip Perry, President and CEO. “Although there are still many areas where we can improve, it’s also becoming even more clear that there are many opportunities to grow and expand our business significantly by enhancing the value we provide our consumers, dealers, and OEMs.”
The company incurred a net loss of $7.4 million, or $-0.09 per basic and diluted share, compared to a net loss of $11.1 million, or $-0.13 per basic and diluted share, in the third quarter of 2015.
TrueCar beat by $0.03 on EPS and by $3.97 million on revenue.
Mike Guthrie, TrueCar’s Chief Financial Officer said the company was getting excellent payoffs from its investments in the improvement of dealer sales and service; product and technology; and consumer and dealer research.
TrueCar Inc (NASDAQ:TRUE) making a turnaround with Chip Perry at the wheel
Chip Perry assumed leadership at TrueCar after a management crisis last year in which a number of senior managers exit from the company.
Perry’s initiatives have certainly borne fruit judging from the results of the latest quarter.
“I took this job because I believed TrueCar could become the clear category winner in the online automotive space over the next few years,” said Perry on the conference call. “Now, as I look back on three quarters of progress, I’m pleased to report that we are well on our way.”
Analysts reward TrueCar Inc (NASDAQ:TRUE) with upgrades
TrueCar’s upbeat quarter did not go unrecognized.
Analysts at Craig Hellum upgraded the stock from Hold to Buy and upped their price target from $11 to $14.
Loop Capital upgraded their rating from Hold to Buy.