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Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Fall Y/Y
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Carvana Co. (CVNA - Free Report) incurred a loss of $1.51 per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.87 as well as $2.89 per share in the year-ago quarter. The outperformance was led by higher-than-expected gross profit across all segments. Revenues of $2,606 million topped the Zacks Consensus Estimate of $2,555 million but fell 25.4% year over year.
During the reported quarter, the number of vehicles sold to retail customers declined 25% to 79,240 from the prior-year period. Total gross profit amounted to $341 million, up 14% year over year. SG&A expenses were $472 million, down 35% year over year.
Retail vehicle sales totaled $1,827 million in the quarter, falling 33.1% year over year but topping the consensus metric of $1,779 million. Gross profit amounted to $110 million, rising 29.4% and beating the consensus estimate of $84 million.
In the first quarter, wholesale vehicle sales totaled $618 million, rising 7.5% year over year and surpassing the consensus estimate of $592 million. Gross profit came in at $70 million, rocketing 204.3% and breezing past the consensus estimate of $17.76 million.
In the period under consideration, other sales and revenues contracted 15.3% year over year to $161 million but came ahead of the consensus mark of $148 million. Gross profit was $161 million, down 15.3% but above the consensus mark of $137 million.
Financial Position
Carvana had cash and cash equivalents of $488 million as of Mar 31, 2023, compared with $434 million on Dec 31, 2022. Long-term debt amounted to $6,533 million as of Mar 31, 2023, compared with $6,574 million recorded on Dec 31, 2022.
Q2 Outlook
The company anticipates attaining positive adjusted EBITDA in the second quarter of 2023. Carvana expects total GPU (non-GAAP) to exceed $5,000, comprising Retail GPU of more than $2,000, Wholesale GPU of more than $1,000 and Other GPU of $2,000.
Other Releases From the Auto Space
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
ORLY had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
Penske Automotive Group (PAG - Free Report) reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. This marked the 12th consecutive earnings beat for the company. The auto retailer registered net sales of $7,339 million, which topped the Zacks Consensus Estimate of $6,833 million. The top line rose 5.3% from the year-ago quarter.
Penske had cash and cash equivalents of $100.6 million as of Mar 31, 2023. The long-term debt amounted to $1,619.8 million, up from $1,546.9 million as of Mar 31, 2023. During the quarter under discussion, PAG repurchased 0.9 million shares of common stock for $110.2 million.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2023 adjusted earnings per share of $1.33, missing the Zacks Consensus Estimate of $1.84. Lower-than-expected sales from the wholesale vehicle segment led to the underperformance. Also, the bottom line fell 43% from $2.33 per share reported in the year-ago quarter. Total revenues amounted to $3,491.2 million, marking an increase of 1%. The figure surpassed the Zacks Consensus Estimate of $3,487 million.
SAH had cash and cash equivalents of $160.2 million as of Mar 31, 2023. The long-term debt amounted to $1,650.8 million as of Mar 31, 2023. The board of directors approved a hike of 3.6% on the quarterly cash dividend, which amounted to 29 cents, payable on Jul 14, 2023, to all stockholders of record as of Jun 15, 2023.
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Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Fall Y/Y
Carvana Co. (CVNA - Free Report) incurred a loss of $1.51 per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.87 as well as $2.89 per share in the year-ago quarter. The outperformance was led by higher-than-expected gross profit across all segments. Revenues of $2,606 million topped the Zacks Consensus Estimate of $2,555 million but fell 25.4% year over year.
During the reported quarter, the number of vehicles sold to retail customers declined 25% to 79,240 from the prior-year period. Total gross profit amounted to $341 million, up 14% year over year. SG&A expenses were $472 million, down 35% year over year.
Carvana currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Segmental Performance
Retail vehicle sales totaled $1,827 million in the quarter, falling 33.1% year over year but topping the consensus metric of $1,779 million. Gross profit amounted to $110 million, rising 29.4% and beating the consensus estimate of $84 million.
In the first quarter, wholesale vehicle sales totaled $618 million, rising 7.5% year over year and surpassing the consensus estimate of $592 million. Gross profit came in at $70 million, rocketing 204.3% and breezing past the consensus estimate of $17.76 million.
In the period under consideration, other sales and revenues contracted 15.3% year over year to $161 million but came ahead of the consensus mark of $148 million. Gross profit was $161 million, down 15.3% but above the consensus mark of $137 million.
Financial Position
Carvana had cash and cash equivalents of $488 million as of Mar 31, 2023, compared with $434 million on Dec 31, 2022. Long-term debt amounted to $6,533 million as of Mar 31, 2023, compared with $6,574 million recorded on Dec 31, 2022.
Q2 Outlook
The company anticipates attaining positive adjusted EBITDA in the second quarter of 2023. Carvana expects total GPU (non-GAAP) to exceed $5,000, comprising Retail GPU of more than $2,000, Wholesale GPU of more than $1,000 and Other GPU of $2,000.
Other Releases From the Auto Space
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
ORLY had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
Penske Automotive Group (PAG - Free Report) reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. This marked the 12th consecutive earnings beat for the company. The auto retailer registered net sales of $7,339 million, which topped the Zacks Consensus Estimate of $6,833 million. The top line rose 5.3% from the year-ago quarter.
Penske had cash and cash equivalents of $100.6 million as of Mar 31, 2023. The long-term debt amounted to $1,619.8 million, up from $1,546.9 million as of Mar 31, 2023. During the quarter under discussion, PAG repurchased 0.9 million shares of common stock for $110.2 million.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2023 adjusted earnings per share of $1.33, missing the Zacks Consensus Estimate of $1.84. Lower-than-expected sales from the wholesale vehicle segment led to the underperformance. Also, the bottom line fell 43% from $2.33 per share reported in the year-ago quarter. Total revenues amounted to $3,491.2 million, marking an increase of 1%. The figure surpassed the Zacks Consensus Estimate of $3,487 million.
SAH had cash and cash equivalents of $160.2 million as of Mar 31, 2023. The long-term debt amounted to $1,650.8 million as of Mar 31, 2023. The board of directors approved a hike of 3.6% on the quarterly cash dividend, which amounted to 29 cents, payable on Jul 14, 2023, to all stockholders of record as of Jun 15, 2023.