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Carvana (CVNA) Q2 Earnings & Sales Trump Estimates, View Up
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Carvana Co. (CVNA - Free Report) posted second-quarter 2021 earnings per share of 26 cents. The Zacks Consensus Estimate was pegged at a loss of 37 cents. This was a landmark quarter for Carvana as it marked the first positive net income quarter for the company. Higher-than-anticipated gross profit from all of the company’s segments drove this outperformance. The reported profit also turned around the year-ago quarter’s loss of 62 cents per share.
During the second quarter, total revenues came in at $3,336 million, surpassing the Zacks Consensus Estimate of $2,491 million. Moreover, the top-line figure increased from the year-ago sales of $1,118 million.
During the June-end quarter, the number of used vehicles sold to retail customers surged 95.7% to 107,815 compared with the prior-year period’s 55,098. Total gross profit amounted to $552 million, up a whopping 268% year over year. SG&A expenses came in at $470 million, flaring up 96.7% year on year.
Used vehicle sales totaled $2,504 million in the second quarter, skyrocketing 152.4% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,108 million. Gross profit for used vehicle amounted to $218 million, significantly jumping 230.3% year over year. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $155 million.
For the reported quarter, wholesale vehicle sales summed $557 million, soaring a whopping 1,036.7% year over year. The figure also topped the consensus mark of $239 million. Gross profit for wholesale vehicle came in at $59 million, up an outstanding 742.9% year over year. The metric also outpaced the consensus mark of $21 million.
For the April-June period, other sales and revenues shot up 257.1% year over year to $275 million. The figure also trumped the Zacks Consensus Estimate of $217 million. Gross profit came in at $275 million, surging from the year-ago period’s $77 million. In addition, the metric exceeded the Zacks Consensus Estimate of $192 million.
Financial Position
Notably, the company had cash and cash equivalents of $201 million as of Jun 30, 2021, as compared with $246.3 million as on Jun 30, 2020. Long-term debt amounted to $2,327 million as of Jun 30, 2021, up from the $965.7 million recorded as of Jun 30, 2020.
In light of the record gross profit per unit and record EBITDA margin generated by Carvana — which shares space with TrueCar Inc. (TRUE - Free Report) , CarGurus, Inc. (CARG - Free Report) and Vroom, Inc. (VRM - Free Report) — in the second quarter, management projects robust growth throughout this year. The company estimates gross profit per unit to be more than $4,000 in 2021, significantly above the earlier outlook of mid-$3,000 level and higher than the $3,252 recorded in 2020.
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Carvana (CVNA) Q2 Earnings & Sales Trump Estimates, View Up
Carvana Co. (CVNA - Free Report) posted second-quarter 2021 earnings per share of 26 cents. The Zacks Consensus Estimate was pegged at a loss of 37 cents. This was a landmark quarter for Carvana as it marked the first positive net income quarter for the company. Higher-than-anticipated gross profit from all of the company’s segments drove this outperformance. The reported profit also turned around the year-ago quarter’s loss of 62 cents per share.
During the second quarter, total revenues came in at $3,336 million, surpassing the Zacks Consensus Estimate of $2,491 million. Moreover, the top-line figure increased from the year-ago sales of $1,118 million.
During the June-end quarter, the number of used vehicles sold to retail customers surged 95.7% to 107,815 compared with the prior-year period’s 55,098. Total gross profit amounted to $552 million, up a whopping 268% year over year. SG&A expenses came in at $470 million, flaring up 96.7% year on year.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Segmental Performance
Used vehicle sales totaled $2,504 million in the second quarter, skyrocketing 152.4% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,108 million. Gross profit for used vehicle amounted to $218 million, significantly jumping 230.3% year over year. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $155 million.
For the reported quarter, wholesale vehicle sales summed $557 million, soaring a whopping 1,036.7% year over year. The figure also topped the consensus mark of $239 million. Gross profit for wholesale vehicle came in at $59 million, up an outstanding 742.9% year over year. The metric also outpaced the consensus mark of $21 million.
For the April-June period, other sales and revenues shot up 257.1% year over year to $275 million. The figure also trumped the Zacks Consensus Estimate of $217 million. Gross profit came in at $275 million, surging from the year-ago period’s $77 million. In addition, the metric exceeded the Zacks Consensus Estimate of $192 million.
Financial Position
Notably, the company had cash and cash equivalents of $201 million as of Jun 30, 2021, as compared with $246.3 million as on Jun 30, 2020. Long-term debt amounted to $2,327 million as of Jun 30, 2021, up from the $965.7 million recorded as of Jun 30, 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.
Outlook
In light of the record gross profit per unit and record EBITDA margin generated by Carvana — which shares space with TrueCar Inc. (TRUE - Free Report) , CarGurus, Inc. (CARG - Free Report) and Vroom, Inc. (VRM - Free Report) — in the second quarter, management projects robust growth throughout this year. The company estimates gross profit per unit to be more than $4,000 in 2021, significantly above the earlier outlook of mid-$3,000 level and higher than the $3,252 recorded in 2020.