NEW YORK (TheStreet) -- TrueCar (TRUE - Get Report) stock is declining by 18.72% to $4.69 in mid-morning trading on Friday, after the Santa Monica, CA-based company reported lower than expected financial results for the 2015 fourth quarter, following yesterday's market close.
The digital automotive marketplace posted a loss of 6 cents per share for the quarter ended December 31, while analysts surveyed by Thomson Reuters had estimated for a loss of 4 cents per share.
Revenue increased by 15% year-over-year to $63.59 million, but missed estimates of $65.43 million for the latest quarter.
"[T]he number of vehicles sold to TrueCar users by TrueCar Certified Dealers increased 12% compared with the fourth quarter of 2014, yet the period was a difficult one and marked the close of a challenging year," CFO Mike Guthrie said in a statement.
TrueCar set its 2016 first quarter revenue guidance at $60 million to $62 million, well below consensus of $69.18 million.
This year, the company is expected to have "an investment year, impacting overall profitability as revenue growth slows," JMP Securities said in an analyst note this morning.
The firm lowered TrueCar's stock rating to "market perform" from "market outperform" following the weak quarterly results and sales guidance.
Separately, TheStreet Ratings has a "sell" rating and a letter grade of D on TrueCar because of the company's disappointing stock performance and lower than average equity.
You can view the full analysis from the report here: TRUE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.TRUE data by YCharts