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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).
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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Carvana (CVNA) Down 7.5% Despite Narrower Q1 Loss & Sales Beat
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.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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