What happened Shares of CarGurus (NASDAQ: CARG), a global online automotive marketplace, are plunging more than 24% lower Friday morning despite the company beating analysts' top- and bottom-line estimates during the fourth quarter. So what Starting from the top, revenue increased 25% to $158.2 million compared to the prior year, easily topping analysts' estimates of $154.6 million. Fourth-quarter adjusted earnings per share checked in at $0.17, also topping analysts' estimates of $0.13 per share. "CarGurus finished 2019 with a strong fourth quarter," said Langley Steinert, founder and CEO of CarGurus, in a press release. "Our U.S. marketplace saw continued traffic and lead growth in the fourth quarter, and for the full-year 2019 we generated over 65 million connections and over 38 million leads, supporting what we believe is industry-leading ROI for our paying dealers." Image source: Getty Images. If you're wondering why CarGurus stock is cratering Friday despite topping estimates and reporting a solid quarter, it's likely due to management's disappointing guidance. Management expects revenue between $156.5 million and $159.5 million for 2020, below analysts' estimates of $163.6 million. Management also expects 2020 earnings per share between $0.50 to $0.55 per share, well below analysts' estimates of $0.66 per share. Now what Uncertainty seems to be weighing on CarGurus, and much of the broader automotive industry, with concerns regarding dealerships' inventory, digital trends, margins, and sales. That uncertainty isn't likely to fade anytime soon, but for long-term investors the company is still taking steps forward as it rolled out a second consumer financing partner, continues to cross sell multiple products and services to more dealers, and is efficiently scaling its international business. It was a strong quarter for CarGurus, but it's difficult to be optimistic for much of the automotive industry in the near term. 10 stocks we like better than CarGurus, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and CarGurus, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of December 1, 2019 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CarGurus, Inc. The Motley Fool has a disclosure policy.Source