Carvana Co. (CVNA - Free Report) incurred a loss of $1 per share for fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 95 cents and the year-ago quarter loss of 97 cents per share. Revenues of $2.42 billion missed the Zacks Consensus Estimate of $2.54 billion and fell 14.7% year over year.
Key Highlights
Total gross profit amounted to $402 million, up 108% year over year. Total gross profit per unit (GPU) was $5,283, reflecting a jump of 138.1% year over year, topping our estimate of $5,084. SG&A expenses were $439 million, down 69% year over year. Carvana achieved an adjusted EBITDA of $60 million for the fourth quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $1.77 billion in the quarter, falling 14% year over year and missing our estimate of $1.88 billion amid lower-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers declined 12.5% to 76,090 from the prior-year period and missed our estimate of 79,824 units. Gross profit amounted to $214 million, surging 478.4% year over year. Gross profit per unit came in at $2,812, significantly up from $425 generated in the year-ago period as well as ahead of our expectations of $2,135.
In the fourth quarter, wholesale vehicle sales totaled $499 million, falling 21.2% year over year and lagging our forecast of $572 million. Gross profit came in at $40 million, doubling from the corresponding quarter of 2022 but missing our estimate of $55.8 million. GPU came in at $526, rocketing from $230.
In the period under consideration, other sales and revenues rose 8.8% year over year to $148 million and beat our forecast of $144.6. Gross profit was $148 million, up 8.8% year over year. GPU came in at $1,945, up 24.4% year over year but lagged our estimate of $2,275 million.
Financial Position
Carvana had cash and cash equivalents of $530 million as of Dec 31, 2023 compared with $434 million on Dec 31, 2022. Long-term debt amounted to $5.4 billion as of Dec 31, 2023 compared with $6.57 billion recorded on Dec 31, 2022.
Q1 Outlook
The company expects to generate more than $100 million in adjusted EBITDA in the first quarter of 2024. Carvana expects a sequential increase in wholesale and other GPU in the January-March period. Retail GPU is expected to be at similar levels compared to the fourth quarter of 2023.
Zacks Rank & Key Picks
CVNA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are General Motors (GM - Free Report) , PACCAR (PCAR - Free Report) and Allison Transmission (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.9% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved by $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 19 cents and 6 cents, respectively, in the past 30 days. The trucking giant surpassed earnings estimates in the trailing four quarters, the average surprise being 17.07%.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved by 13 cents and 29 cents, respectively, in the past seven days.
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Carvana Co. (CVNA - Free Report) incurred a loss of $1 per share for fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 95 cents and the year-ago quarter loss of 97 cents per share. Revenues of $2.42 billion missed the Zacks Consensus Estimate of $2.54 billion and fell 14.7% year over year.
Key Highlights
Total gross profit amounted to $402 million, up 108% year over year. Total gross profit per unit (GPU) was $5,283, reflecting a jump of 138.1% year over year, topping our estimate of $5,084. SG&A expenses were $439 million, down 69% year over year. Carvana achieved an adjusted EBITDA of $60 million for the fourth quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $1.77 billion in the quarter, falling 14% year over year and missing our estimate of $1.88 billion amid lower-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers declined 12.5% to 76,090 from the prior-year period and missed our estimate of 79,824 units. Gross profit amounted to $214 million, surging 478.4% year over year. Gross profit per unit came in at $2,812, significantly up from $425 generated in the year-ago period as well as ahead of our expectations of $2,135.
In the fourth quarter, wholesale vehicle sales totaled $499 million, falling 21.2% year over year and lagging our forecast of $572 million. Gross profit came in at $40 million, doubling from the corresponding quarter of 2022 but missing our estimate of $55.8 million. GPU came in at $526, rocketing from $230.
In the period under consideration, other sales and revenues rose 8.8% year over year to $148 million and beat our forecast of $144.6. Gross profit was $148 million, up 8.8% year over year. GPU came in at $1,945, up 24.4% year over year but lagged our estimate of $2,275 million.
Financial Position
Carvana had cash and cash equivalents of $530 million as of Dec 31, 2023 compared with $434 million on Dec 31, 2022. Long-term debt amounted to $5.4 billion as of Dec 31, 2023 compared with $6.57 billion recorded on Dec 31, 2022.
Q1 Outlook
The company expects to generate more than $100 million in adjusted EBITDA in the first quarter of 2024. Carvana expects a sequential increase in wholesale and other GPU in the January-March period. Retail GPU is expected to be at similar levels compared to the fourth quarter of 2023.
Zacks Rank & Key Picks
CVNA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are General Motors (GM - Free Report) , PACCAR (PCAR - Free Report) and Allison Transmission (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.9% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved by $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 19 cents and 6 cents, respectively, in the past 30 days. The trucking giant surpassed earnings estimates in the trailing four quarters, the average surprise being 17.07%.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved by 13 cents and 29 cents, respectively, in the past seven days.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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