Carvana Co.’s (CVNA - Free Report) shares have declined 4.7% since the company incurred wider-than-expected third-quarter 2021 loss on Nov 4 after the closing bell. Loss per share of 38 cents widened from the year-ago figure of 10 cents a share. The Zacks Consensus Estimate was pegged at a loss of 28 cents. The underperformance stemmed from lower-than-expected gross profit per unit from ‘used vehicle’ and ‘other’ sales.
The top line, however, was better than expected and improved year over year. Third-quarter revenues of $3,480 million outpaced the Zacks Consensus Estimate of $3,252 million and surged 125% year over year.
During the September-end quarter, the number of used vehicles sold to retail customers grew 74% to 111,949 from the prior-year period’s 64,414. Total gross profit amounted to $523 million, up a whopping 100% year over year. SG&A expenses came in at $546 million, flaring up 108.4% year on year.
Segmental Performance
Used vehicle sales totaled $2,650 million for the third quarter, rocketing 105.6% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,468 million. Gross profit per unit for used vehicles amounted to $1,769, declining 4.8% year over year. The metric also fell short of the Zacks Consensus Estimate of $1,780.
For the reported quarter, wholesale vehicle sales summed $552 million, soaring a whopping 324.6% year over year. The figure also topped the consensus mark of $418 million. Gross profit per unit for wholesale vehicles came in at $420, up 58.4% year over year. The metric also outpaced the consensus mark of $362 million.
For the July-September period, other sales and revenues shot up 122.4% year over year to $278 million. The figure also trumped the Zacks Consensus Estimate of $260 million. Gross profit per unit came in at $2,483, surging from the year-ago period’s $1,934. The metric, however, lagged the Zacks Consensus Estimate of $2,565.
Financial Position
Carvana had cash and cash equivalents of $297 million as of Sep 30, 2021 compared with $301 million on Dec 31, 2020. Long-term debt amounted to $3,134 million as of Sep 30, 2021, up from $1,167 million recorded on Dec 31, 2020. The firm currently carries a Zacks Rank #3 (Hold). It estimates total gross profit per unit in low-to-mid $4,000 in 2021.
How Did CVNA’s Close Peers Fare in Q3?
TrueCar (TRUE - Free Report) reported third-quarter adjusted loss of 2 cents a share, narrower than the Zacks Consensus Estimate of a loss of 3 cents. The bottom line, however, deteriorated from the year-ago earnings of 14 cents a share. Revenues of $55 million declined from the year-ago figure of $77 million and missed the consensus mark of $59 million.
TrueCar surpassed earnings estimates in each of the trailing four quarters, with the average being 58.3%. The Zacks Consensus Estimate for TRUE’s 2022 earnings and revenues implies year-over-year growth of 100% and 14.9%, respectively.
TrueCar currently carries a Zacks Rank #3. The stock has declined 5% year to date.
CarGurus (CARG - Free Report) reported third-quarter adjusted earnings of 38 cents a share, beating the Zacks Consensus Estimate of 32 cents. The bottom line also rose from the year-ago earnings of 37 cents a share. Revenues of $223 million grew 51% year over year and topped the consensus mark of $215 million.
CarGurus surpassed earnings estimates in each of the trailing four quarters, with the average being 37.9%. The Zacks Consensus Estimate for CARG’s 2021and 2022 sales implies year-over-year growth of 48.8% and 18.8%, respectively.
CarGurus currently carries a Zacks Rank #3. The stock has increased 22.2% year to date.
Vroom (VRM - Free Report) reported third-quarter adjusted loss of 70 cents a share, narrower than the Zacks Consensus Estimate of 74 cents. Yet, the bottom line deteriorated from the year-ago loss of 31 cents a share. Revenues of $897 million jumped from the year-ago figure of $323 million and outpaced the consensus mark of $894 million.
Vroom surpassed earnings estimates in two of the trailing four quarters, matched the same once and missed on another occasion, with the average negative surprise being 1%. The Zacks Consensus Estimate for VRM’s 2021 and 2022 revenues implies year-over-year growth of 130.9% and 48.5%, respectively.
Vroom currently carries a Zacks Rank #3. The stock has slumped 54.6% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Carvana Co.’s (CVNA - Free Report) shares have declined 4.7% since the company incurred wider-than-expected third-quarter 2021 loss on Nov 4 after the closing bell. Loss per share of 38 cents widened from the year-ago figure of 10 cents a share. The Zacks Consensus Estimate was pegged at a loss of 28 cents. The underperformance stemmed from lower-than-expected gross profit per unit from ‘used vehicle’ and ‘other’ sales.
The top line, however, was better than expected and improved year over year. Third-quarter revenues of $3,480 million outpaced the Zacks Consensus Estimate of $3,252 million and surged 125% year over year.
During the September-end quarter, the number of used vehicles sold to retail customers grew 74% to 111,949 from the prior-year period’s 64,414. Total gross profit amounted to $523 million, up a whopping 100% year over year. SG&A expenses came in at $546 million, flaring up 108.4% year on year.
Segmental Performance
Used vehicle sales totaled $2,650 million for the third quarter, rocketing 105.6% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,468 million. Gross profit per unit for used vehicles amounted to $1,769, declining 4.8% year over year. The metric also fell short of the Zacks Consensus Estimate of $1,780.
For the reported quarter, wholesale vehicle sales summed $552 million, soaring a whopping 324.6% year over year. The figure also topped the consensus mark of $418 million. Gross profit per unit for wholesale vehicles came in at $420, up 58.4% year over year. The metric also outpaced the consensus mark of $362 million.
For the July-September period, other sales and revenues shot up 122.4% year over year to $278 million. The figure also trumped the Zacks Consensus Estimate of $260 million. Gross profit per unit came in at $2,483, surging from the year-ago period’s $1,934. The metric, however, lagged the Zacks Consensus Estimate of $2,565.
Financial Position
Carvana had cash and cash equivalents of $297 million as of Sep 30, 2021 compared with $301 million on Dec 31, 2020. Long-term debt amounted to $3,134 million as of Sep 30, 2021, up from $1,167 million recorded on Dec 31, 2020. The firm currently carries a Zacks Rank #3 (Hold). It estimates total gross profit per unit in low-to-mid $4,000 in 2021.
How Did CVNA’s Close Peers Fare in Q3?
TrueCar (TRUE - Free Report) reported third-quarter adjusted loss of 2 cents a share, narrower than the Zacks Consensus Estimate of a loss of 3 cents. The bottom line, however, deteriorated from the year-ago earnings of 14 cents a share. Revenues of $55 million declined from the year-ago figure of $77 million and missed the consensus mark of $59 million.
TrueCar surpassed earnings estimates in each of the trailing four quarters, with the average being 58.3%. The Zacks Consensus Estimate for TRUE’s 2022 earnings and revenues implies year-over-year growth of 100% and 14.9%, respectively.
TrueCar currently carries a Zacks Rank #3. The stock has declined 5% year to date.
CarGurus (CARG - Free Report) reported third-quarter adjusted earnings of 38 cents a share, beating the Zacks Consensus Estimate of 32 cents. The bottom line also rose from the year-ago earnings of 37 cents a share. Revenues of $223 million grew 51% year over year and topped the consensus mark of $215 million.
CarGurus surpassed earnings estimates in each of the trailing four quarters, with the average being 37.9%. The Zacks Consensus Estimate for CARG’s 2021and 2022 sales implies year-over-year growth of 48.8% and 18.8%, respectively.
CarGurus currently carries a Zacks Rank #3. The stock has increased 22.2% year to date.
Vroom (VRM - Free Report) reported third-quarter adjusted loss of 70 cents a share, narrower than the Zacks Consensus Estimate of 74 cents. Yet, the bottom line deteriorated from the year-ago loss of 31 cents a share. Revenues of $897 million jumped from the year-ago figure of $323 million and outpaced the consensus mark of $894 million.
Vroom surpassed earnings estimates in two of the trailing four quarters, matched the same once and missed on another occasion, with the average negative surprise being 1%. The Zacks Consensus Estimate for VRM’s 2021 and 2022 revenues implies year-over-year growth of 130.9% and 48.5%, respectively.
Vroom currently carries a Zacks Rank #3. The stock has slumped 54.6% year to date. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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