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Carvana (CVNA) Q1 Loss Wider Than Expected, Revenues Up Y/Y
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Carvana (CVNA - Free Report) incurs a loss of $2.89 per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.72 and the year-ago loss of 46 cents.
First-quarter revenues of $3,497 million outpaced the Zacks Consensus Estimate of $3,400.3 million and surged 56% year over year.
During the reported quarter, the number of used vehicles sold to retail customers grew 14% to 105,185 from the prior-year period. Total gross profit amounted to $298 million, decreasing 12% year over year. SG&A expenses were $727 million, flaring up 45.4%.
Used vehicle sales totaled $2,732 million in the first quarter, rising 34.1% year over year. Gross profit per unit for used vehicles amounted to $808, falling 33.3%.
In the first quarter, wholesale vehicle sales summed $575 million, soaring a whopping 139.6% year over year. Gross profit per unit for wholesale vehicles came in at $219, falling 3.7%.
In the period in consideration, other sales and revenues fell 7.3% year over year to $190 million. Gross profit per unit came in at $1,806, down 18.6%.
Financial Position
Carvana had cash and cash equivalents of $247 million as of Mar 31, 2022, compared with $403 million on Dec 31, 2021. Long-term debt amounted to $3,286 million as of Mar 31, 2022, up from $3,208 million recorded on Dec 31, 2021.
In the light of higher used vehicle prices, volatility in interest rates and very high fuel prices, the company has not provided any near-term guidance for the rest of the year.
Zacks Rank & Key Picks
CVNA currently carries a Zacks Rank #5 (Strong Sell).
AutoNation has an expected earnings growth rate of 11.14% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 8.3% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.3%, on average. The stock has risen 9.8% over the past year.
Group 1 has an expected earnings growth rate of around 10% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 10%, on average. The stock has gained 10.2% over the past year.
The Zacks Consensus Estimate for Penske’s current-year earnings has been revised around 7% upward in the past 60 days.
Penske’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. PAG pulled off a trailing four-quarter earnings surprise of 19%, on average. The stock has grown 18.7% over the past year.
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Carvana (CVNA) Q1 Loss Wider Than Expected, Revenues Up Y/Y
Carvana (CVNA - Free Report) incurs a loss of $2.89 per share in first-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.72 and the year-ago loss of 46 cents.
First-quarter revenues of $3,497 million outpaced the Zacks Consensus Estimate of $3,400.3 million and surged 56% year over year.
During the reported quarter, the number of used vehicles sold to retail customers grew 14% to 105,185 from the prior-year period. Total gross profit amounted to $298 million, decreasing 12% year over year. SG&A expenses were $727 million, flaring up 45.4%.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Segmental Performance
Used vehicle sales totaled $2,732 million in the first quarter, rising 34.1% year over year. Gross profit per unit for used vehicles amounted to $808, falling 33.3%.
In the first quarter, wholesale vehicle sales summed $575 million, soaring a whopping 139.6% year over year. Gross profit per unit for wholesale vehicles came in at $219, falling 3.7%.
In the period in consideration, other sales and revenues fell 7.3% year over year to $190 million. Gross profit per unit came in at $1,806, down 18.6%.
Financial Position
Carvana had cash and cash equivalents of $247 million as of Mar 31, 2022, compared with $403 million on Dec 31, 2021. Long-term debt amounted to $3,286 million as of Mar 31, 2022, up from $3,208 million recorded on Dec 31, 2021.
In the light of higher used vehicle prices, volatility in interest rates and very high fuel prices, the company has not provided any near-term guidance for the rest of the year.
Zacks Rank & Key Picks
CVNA currently carries a Zacks Rank #5 (Strong Sell).
Better-ranked players in the auto space include AutoNation, Inc. (AN - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Group 1 Automotive, Inc. (GPI - Free Report) and Penske Automotive Group (PAG - Free Report) , each carrying a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
AutoNation has an expected earnings growth rate of 11.14% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 8.3% upward in the past 60 days.
AutoNation’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. AN pulled off a trailing four-quarter earnings surprise of 39.3%, on average. The stock has risen 9.8% over the past year.
Group 1 has an expected earnings growth rate of around 10% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 8% upward in the past 60 days.
Group 1’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GPI pulled off a trailing four-quarter earnings surprise of 10%, on average. The stock has gained 10.2% over the past year.
The Zacks Consensus Estimate for Penske’s current-year earnings has been revised around 7% upward in the past 60 days.
Penske’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. PAG pulled off a trailing four-quarter earnings surprise of 19%, on average. The stock has grown 18.7% over the past year.