Shares of Cars.com Inc. CARS, -1.44% sank 3.6% in premarket trade Wednesday, after the digital automotive marketplace beat second-quarter profit expectations but missed on sales, citing disappointing subscription revenue. Net income fell to $12.7 million, or 18 cents a share, from $24.8 million, or 35 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 48 cents a share, above the FactSet consensus of 25 cents. Revenue grew 8% to $168.5 million but was below the FactSet consensus of $170.8 million. With subscription revenue "behind out plan" in the first half of the year, the company reduced its 2018 revenue growth outlook to 6% to 7% from 10% to 11%. Separately, the company said current Chief Revenue Officer John Clavadetscher, who joined Cars.com in 1999, will step down, to be succeeded by Doug Miller, who was previously chief executive of Chatbox. Cars.com's stock has lost 2.8% year to date, while the Dow Jones Industrial Average DJIA, +0.50% has gained 3.7%.
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