Shares of TrueCar Decline After Profit Warning

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 [e-mail]

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