Shares of car-shopping website TrueCar Inc. fell 35%, to $6.90 a
share in after-hours trading, after the company issued a
second-quarter profit warning and adjusted its guidance for the
year.
The warning comes after car retailer AutoNation Inc. earlier
this month said it would cut its ties with the online buying firm
following a four-month contract dispute.
AutoNation Chief Executive Mike Jackson said he would be relying
on its company's online storefront and other third-party providers
to sell vehicles.
The dispute reflects growing tension between the nation's auto
dealers and third-party referral sites. As dealers invest in their
own web-shopping tools, they are rethinking how deeply to rely on
third parties.
TrueCar said it expects second-quarter revenue to be in the
range of $65 million to $65.3 million, with a loss expected in the
range of $15 million to $15.5 million.
Analysts polled by Thomson Reuters had seen revenue of $68
million and a profit of $2.2 million.
Additionally, the company said it is reducing its 2015 full-year
revenue guidance to a range of $252 million to $258 million. In
May, TrueCar projected revenue for the year to be between $280
million and $290 million.
The company plans to report second-quarter results Aug. 6.
Write to Cassandra Jaramillo at cassandra.jaramillo@wsj.com
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