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Carvana's (CVNA) Q2 Loss Widens Y/Y, Sales Miss Estimates
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Carvana Co. (CVNA - Free Report) reported second-quarter 2020 loss per share of 62 cents, narrower than the Zacks Consensus Estimate of a loss of 86 cents. Higher-than-expected sales and gross profit from used vehicle sales led to this outperformance.
The online used car dealer incurred a loss of 40 cents a share in second-quarter 2019. This downside was mainly due to lower year-over-year revenue growth and gross profit from wholesale vehicle sales.
During the reported quarter, total revenues came in at $1,118 million, which missed the Zacks Consensus Estimate of $1,130 million. However, the top-line figure increased from the year-ago number of $986 million.
During the second quarter, the number of vehicles sold to retail customers grew 25% to 55,098 compared with the prior-year period’s 44,000. Total gross profit of $150.2 million marked an increase of 8.8% year over year. However, SG&A expenses came in at $240 million, down 32% year over year. Resultantly, the firm incurred a pretax loss of $106.6 million, wider than the year-ago quarter’s $64.1 million.
Used vehicle sales totaled $992 million in second-quarter 2020, up 16% year over year. The figure also beat the Zacks Consensus Estimate of $914 million. Gross Profit for used vehicle amounted to $65.6 million, up 3.5% year over year. The reported figure also surpassed the Zacks Consensus Estimate of $52 million.
Wholesale vehicle sales amounted to $49.4 million, down from the $63 million recorded in the second quarter of 2019. The figure also missed the Zacks Consensus Estimate of $77 million. Gross Profit for wholesale vehicle amounted to $7.54 million, up 7.8% year over year. The figure outpaced the consensus mark of $1.08 million as well.
Other sales and revenues also increased to $77.1 million from the $67.4 million witnessed in the comparable quarter last year. The figure also beat the Zacks Consensus Estimate of $53 million. Gross Profit amounted to $77.1 million, up 14.4% year over year. In addition, the reported figure topped the Zacks Consensus Estimate of $48.02 million.
Financial Position
Notably, the company had cash and cash equivalents of $246.3 million as of Jun 30, 2020, as compared to $76 million as on Dec 31, 2019. Long-term debt amounted to $965.7 million as of Jun 30, 2020, up from $883.1 million recorded as of Dec 31, 2019.
Carvana has suspended the 2020 guidance as it expects the pandemic’s crippling impact to strain its operations in the days to come.
Zacks Rank & Stocks to Consider
Carvana currently carries a Zacks Rank of 3 (Hold).
Shares of AutoNation have rallied 9.6%, year to date, compared with the industry’s gain of 7.8%.
Shares of LCI Industries have appreciated 19.6%, year to date, as against the industry’s decline of 6.1%.
Shares of Geely Automobile have gained 13%, year to date, as against the industry’s decline of 11.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
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Carvana's (CVNA) Q2 Loss Widens Y/Y, Sales Miss Estimates
Carvana Co. (CVNA - Free Report) reported second-quarter 2020 loss per share of 62 cents, narrower than the Zacks Consensus Estimate of a loss of 86 cents. Higher-than-expected sales and gross profit from used vehicle sales led to this outperformance.
The online used car dealer incurred a loss of 40 cents a share in second-quarter 2019. This downside was mainly due to lower year-over-year revenue growth and gross profit from wholesale vehicle sales.
During the reported quarter, total revenues came in at $1,118 million, which missed the Zacks Consensus Estimate of $1,130 million. However, the top-line figure increased from the year-ago number of $986 million.
During the second quarter, the number of vehicles sold to retail customers grew 25% to 55,098 compared with the prior-year period’s 44,000. Total gross profit of $150.2 million marked an increase of 8.8% year over year. However, SG&A expenses came in at $240 million, down 32% year over year. Resultantly, the firm incurred a pretax loss of $106.6 million, wider than the year-ago quarter’s $64.1 million.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Operational Results
Used vehicle sales totaled $992 million in second-quarter 2020, up 16% year over year. The figure also beat the Zacks Consensus Estimate of $914 million. Gross Profit for used vehicle amounted to $65.6 million, up 3.5% year over year. The reported figure also surpassed the Zacks Consensus Estimate of $52 million.
Wholesale vehicle sales amounted to $49.4 million, down from the $63 million recorded in the second quarter of 2019. The figure also missed the Zacks Consensus Estimate of $77 million. Gross Profit for wholesale vehicle amounted to $7.54 million, up 7.8% year over year. The figure outpaced the consensus mark of $1.08 million as well.
Other sales and revenues also increased to $77.1 million from the $67.4 million witnessed in the comparable quarter last year. The figure also beat the Zacks Consensus Estimate of $53 million. Gross Profit amounted to $77.1 million, up 14.4% year over year. In addition, the reported figure topped the Zacks Consensus Estimate of $48.02 million.
Financial Position
Notably, the company had cash and cash equivalents of $246.3 million as of Jun 30, 2020, as compared to $76 million as on Dec 31, 2019. Long-term debt amounted to $965.7 million as of Jun 30, 2020, up from $883.1 million recorded as of Dec 31, 2019.
Carvana has suspended the 2020 guidance as it expects the pandemic’s crippling impact to strain its operations in the days to come.
Zacks Rank & Stocks to Consider
Carvana currently carries a Zacks Rank of 3 (Hold).
Some better-ranked stocks in the auto sector include AutoNation (AN - Free Report) , LCI Industries (LCII - Free Report) and Geely Automobile Holdings Ltd. (GELYY - Free Report) . While AutoNation and LCI Industries sport a ZacksRank of 1, Geely Automobile carries a Zacks Rank of 2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of AutoNation have rallied 9.6%, year to date, compared with the industry’s gain of 7.8%.
Shares of LCI Industries have appreciated 19.6%, year to date, as against the industry’s decline of 6.1%.
Shares of Geely Automobile have gained 13%, year to date, as against the industry’s decline of 11.6%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>