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Carvana (CVNA) Down 1.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Carvana (CVNA - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Carvana due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Carvana's Q4 Loss Narrows Y/Y, Sales Beat Estimates
Carvana reported fourth-quarter 2020 loss per share of 41 cents, narrower than the Zacks Consensus Estimate of a loss of 48 cents. Higher-than-anticipated sales across all of the company’s segments led to this narrower-than-expected loss. The reported loss is also significantly narrower than the year-ago quarter’s loss of 79 cents per share.
During the fourth quarter, total revenues were $1,826 million, surpassing the Zacks Consensus Estimate of $1,595 million. Moreover, the top-line figure increased from the year-ago sales of $1,104 million.
During the December-end quarter, the number of vehicles sold to retail customers jumped 43% to 72,172 compared with the prior-year period’s 50,370. Total gross profit amounted to $243.8 million, up a whopping 70.8% year over year. SG&A expenses were $342.6 million, up 41.8% year on year.
Segmental Performance
Used vehicle sales totaled $1,495.4 million in the fourth quarter,surging 57.4% year over year. The sales figure also beat the Zacks Consensus Estimate of $1,299 million. Gross profit for used vehicle amounted to $91.3 million, climbing 36.7% year over year. However, the reported figure missed the Zacks Consensus Estimate of $111 million.
For the reported quarter, wholesale vehicle sales totaled $186.3 million, soaring 135.5% year over year. The figure also beat the consensus mark of $110 million. Gross profit for wholesale vehicle came in at $7.8 million, up a whopping 524.7% year over year. The metric also outpaced the consensus mark of $7.4 million.
For the October-December period, other sales and revenues climbed 94.3% year over year to $144.7 million. The figure also surpassed the Zacks Consensus Estimate of $126 million. Gross profit came in at $144.7 million, surging from $74.5 million in the comparable year ago period. In addition, the metric outpaced the Zacks Consensus Estimate of $102 million.
Other Tidbits
Notably, the company had cash and cash equivalents of $300.8 million as of Dec 31, 2020, as compared with $76 million as on Dec 31, 2019. Long-term debt amounted to $1,617 million as of Dec 31, 2020, up from the $883.1 million recorded as of Dec 31, 2019.
In light of the encouraging progress made by Carvana on production capacity, management expects robust growth in 2021. The company expects gross profit per unit in the mid-$3,000 level in 2021 as compared with $3,252 recorded in 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -44.85% due to these changes.
VGM Scores
Currently, Carvana has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Carvana has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Carvana (CVNA) Down 1.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Carvana (CVNA - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Carvana due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Carvana's Q4 Loss Narrows Y/Y, Sales Beat Estimates
Carvana reported fourth-quarter 2020 loss per share of 41 cents, narrower than the Zacks Consensus Estimate of a loss of 48 cents. Higher-than-anticipated sales across all of the company’s segments led to this narrower-than-expected loss. The reported loss is also significantly narrower than the year-ago quarter’s loss of 79 cents per share.
During the fourth quarter, total revenues were $1,826 million, surpassing the Zacks Consensus Estimate of $1,595 million. Moreover, the top-line figure increased from the year-ago sales of $1,104 million.
During the December-end quarter, the number of vehicles sold to retail customers jumped 43% to 72,172 compared with the prior-year period’s 50,370. Total gross profit amounted to $243.8 million, up a whopping 70.8% year over year. SG&A expenses were $342.6 million, up 41.8% year on year.
Segmental Performance
Used vehicle sales totaled $1,495.4 million in the fourth quarter,surging 57.4% year over year. The sales figure also beat the Zacks Consensus Estimate of $1,299 million. Gross profit for used vehicle amounted to $91.3 million, climbing 36.7% year over year. However, the reported figure missed the Zacks Consensus Estimate of $111 million.
For the reported quarter, wholesale vehicle sales totaled $186.3 million, soaring 135.5% year over year. The figure also beat the consensus mark of $110 million. Gross profit for wholesale vehicle came in at $7.8 million, up a whopping 524.7% year over year. The metric also outpaced the consensus mark of $7.4 million.
For the October-December period, other sales and revenues climbed 94.3% year over year to $144.7 million. The figure also surpassed the Zacks Consensus Estimate of $126 million. Gross profit came in at $144.7 million, surging from $74.5 million in the comparable year ago period. In addition, the metric outpaced the Zacks Consensus Estimate of $102 million.
Other Tidbits
Notably, the company had cash and cash equivalents of $300.8 million as of Dec 31, 2020, as compared with $76 million as on Dec 31, 2019. Long-term debt amounted to $1,617 million as of Dec 31, 2020, up from the $883.1 million recorded as of Dec 31, 2019.
In light of the encouraging progress made by Carvana on production capacity, management expects robust growth in 2021. The company expects gross profit per unit in the mid-$3,000 level in 2021 as compared with $3,252 recorded in 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -44.85% due to these changes.
VGM Scores
Currently, Carvana has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Carvana has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.