Cars.com Inc (NASDAQ:CARS) shares hit the accelerator early Friday, amid word the company will replace DSP Group Inc. in the S&P SmallCap 600 before the opening of trading on December 2.
Cars.com is an online destination for buying and selling new and used vehicles.
Recently, Cars.com reported third-quarter FY21 revenue of $156.55 million, up 8% year-on-year, above the consensus of $156.28 million. EPS was $0.03 versus $(0.18) last year.
Cars.com sees Q4 revenue of $157.5 million - $159.5 million versus the consensus of $159.15 million.
Earlier this month, Cars closed the acquisition of CreditIQ , announced last week. CreditIQ is a cutting-edge automotive fintech platform that provides instant online loan screening and approvals to facilitate online car buying.
Cars.com paid $30 million at the closing on November 5, which was funded using cash on hand.
There may be future payments of up to an additional $50 million in performance-based cash consideration to be earned over the next three years.
Said CEO Alex Vetter, "The acquisition of CreditIQ technology facilitates CARS' entry into the rapidly-growing, multi-billion-dollar Auto Finance market, expanding our TAM beyond the $35 billion Auto Advertising and Dealer Technology markets we operate in today.
"We're excited to participate in this space with powerful digital solutions for dealers that facilitate online financing and enable them to better compete."
CARS shares traded higher by $1.73, or 13%, at $15.04 in the early part of Friday’s session.
