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Carvana (CVNA) Down 7.5% Despite Narrower Q1 Loss & Sales Beat

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Carvana Co. (CVNA - Free Report) announced the first-quarter 2021 results on May 6. Despite the company’s comprehensive beat and improved year-over-year performance, along with an upbeat guidance for 2021, its shares failed to display an uptrend. Shares of the company have, in fact, depreciated 12.5% since the quarterly performance was reported.

The company posted first-quarter 2021 loss per share of 46 cents, narrower than the Zacks Consensus Estimate of a loss of 70 cents. Higher-than-anticipated gross profit from the wholesale vehicle segment led to this narrower-than-expected loss. The reported loss is also significantly narrower than the year-ago quarter’s loss of $1.19 per share.

During the first quarter, total revenues came in at $2,245 million, surpassing the Zacks Consensus Estimate of $1,948 million. Moreover, the top-line figure increased from the year-ago sales of $1,098 million.

During the March-end quarter, the number of used vehicles sold to retail customers jumped 76.4% to 92,457 compared with the prior-year period’s 52,427. Total gross profit amounted to $338 million, up a whopping 145% year over year. SG&A expenses came in at $397 million, flaring up 43.8% year on year.

Segmental Performance

Used vehicle sales totaled $1,800 million in the first quarter, surging 86.7% year over year. The sales figure also beat the Zacks Consensus Estimate of $1,673 million. Gross profit for used vehicle amounted to $112 million, climbing 34.9% year over year. However, the reported figure missed the Zacks Consensus Estimate of $122 million.

For the reported quarter, wholesale vehicle sales summed $240 million, soaring 200% year over year. The figure also topped the consensus mark of $167 million. Gross profit for wholesale vehicle came in at $21 million, up an outstanding 2,000% year over year. The metric also outpaced the consensus mark of $11 million.

For the January-March period, other sales and revenues skyrocketed 279.6% year over year to $205 million. The figure also trumped the Zacks Consensus Estimate of $151 million. Gross profit came in at $205 million, surging from the year-ago period’s $54 million. In addition, the metric outpaced the Zacks Consensus Estimate of $143 million.

Financial Position

Notably, the company had cash and cash equivalents of $370 million as of Mar 31, 2021, as compared with $72.4 million as on Mar 31, 2020. Long-term debt amounted to $2,254 million as of Mar 31, 2021, up from the $936.1 million recorded as of Mar 31, 2020. Carvana currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In light of the encouraging progress made by Carvana — which shares space with TrueCar Inc. (TRUE - Free Report) , CarGurus, Inc. (CARG - Free Report) and Vroom, Inc. (VRM - Free Report) — on production capacity, management projects robust growth throughout this year. The company estimates gross profit per unit in the mid-$3,000 level in 2021 as compared with $3,252 recorded in 2020.

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