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Carvana (CVNA) Q4 Loss Narrower Than Estimated, Revenues Fall Y/Y
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Carvana Co. (CVNA - Free Report) incurred a loss of 97 cents per share in fourth-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $2.30. The company recorded a loss of $1.02 per share in the year-ago quarter. Fourth-quarter revenues of $2,837 million lagged the Zacks Consensus Estimate of $3,022 million and fell 24% year over year.
During the reported quarter, the number of used vehicles sold to retail customers declined 23% to 86,977 from the prior-year period. Total gross profit amounted to $193 million, down 63% year over year. SG&A expenses were $632 million, flaring up 1.9%.
Used vehicle sales totaled $2,068 million in the quarter, falling 28.6% year over year and also falling short of the consensus metric of $2,261 million. Gross profit per retail unit for used vehicles amounted to $425, falling 71.6% and lagging the consensus estimate of $1,079 million.
In the fourth quarter, wholesale vehicle sales totaled $633 million, rising 10.9% year over year but lagging the consensus estimate of $640 million. Gross profit per retail unit for wholesale vehicles came in at $230, falling 58.1% and lagging the consensus estimate of $419 million.
In the period under consideration, other sales and revenues fell 52.3% year over year to $136 million and lagged the consensus mark of $176 million. Gross profit per retail unit came in at $1,564, down 38% and missed the consensus mark of $1,834.
Financial Position
Carvana had cash and cash equivalents of $434 million as of Dec 31, 2022, compared with $403 million on Dec 31, 2021. Long-term debt amounted to $6,574 million as of Dec 31, 2022, significantly increasing from $3,208 million recorded on Dec 31, 2021.
Outlook
For the first quarter of 2023, Carvana expects an increase in total GPU compared to the fourth quarter of 2022. Carvana revised its guidance for FY2023 capital expenditure, which will now fall within the range of $100-$125 million, down from the range of $100-$150 million estimated in the third quarter of FY2022.
Zacks Rank & Key Picks
CVNA currently has a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Bayerische Motoren Werke (BAMXF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Bayerische is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
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Carvana (CVNA) Q4 Loss Narrower Than Estimated, Revenues Fall Y/Y
Carvana Co. (CVNA - Free Report) incurred a loss of 97 cents per share in fourth-quarter 2022, narrower than the Zacks Consensus Estimate of a loss of $2.30. The company recorded a loss of $1.02 per share in the year-ago quarter. Fourth-quarter revenues of $2,837 million lagged the Zacks Consensus Estimate of $3,022 million and fell 24% year over year.
During the reported quarter, the number of used vehicles sold to retail customers declined 23% to 86,977 from the prior-year period. Total gross profit amounted to $193 million, down 63% year over year. SG&A expenses were $632 million, flaring up 1.9%.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Segmental Performance
Used vehicle sales totaled $2,068 million in the quarter, falling 28.6% year over year and also falling short of the consensus metric of $2,261 million. Gross profit per retail unit for used vehicles amounted to $425, falling 71.6% and lagging the consensus estimate of $1,079 million.
In the fourth quarter, wholesale vehicle sales totaled $633 million, rising 10.9% year over year but lagging the consensus estimate of $640 million. Gross profit per retail unit for wholesale vehicles came in at $230, falling 58.1% and lagging the consensus estimate of $419 million.
In the period under consideration, other sales and revenues fell 52.3% year over year to $136 million and lagged the consensus mark of $176 million. Gross profit per retail unit came in at $1,564, down 38% and missed the consensus mark of $1,834.
Financial Position
Carvana had cash and cash equivalents of $434 million as of Dec 31, 2022, compared with $403 million on Dec 31, 2021. Long-term debt amounted to $6,574 million as of Dec 31, 2022, significantly increasing from $3,208 million recorded on Dec 31, 2021.
Outlook
For the first quarter of 2023, Carvana expects an increase in total GPU compared to the fourth quarter of 2022. Carvana revised its guidance for FY2023 capital expenditure, which will now fall within the range of $100-$125 million, down from the range of $100-$150 million estimated in the third quarter of FY2022.
Zacks Rank & Key Picks
CVNA currently has a Zacks Rank #3 (Hold).
A few top-ranked players in the auto space include Bayerische Motoren Werke (BAMXF - Free Report) , Wabash National (WNC - Free Report) and Modine Manufacturing (MOD - Free Report) , all sporting a Zacks Rank #1 (Strong Buy).
Bayerische is a multi-brand automobile manufacturer that focuses on the premium segments of the worldwide automobile and motorcycle markets and has three brands: BMW, MINI and Rolls-Royce. The Zacks Consensus Estimate for BAMXF’s 2023 sales implies year-over-year growth of 1.88%.
Wabash is one of the leading manufacturers of semi-trailers in North America. The Zacks Consensus Estimates for WNC’s 2023 sales and earnings imply year-over-year growth of 13.06% and 24%, respectively.
Modine operates primarily in a single industry consisting of the manufacture and sale of heat transfer equipment. The Zacks Consensus Estimates for MOD’s 2023 sales and earnings imply year-over-year growth of 11.43% and 43.09%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.