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Carvana (CVNA) to Report Q4 Earnings: What's in the Cards?
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Carvana Co. (CVNA - Free Report) is slated to release fourth-quarter 2023 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 94 cents and $2.55 billion, respectively.
For the fourth quarter, the consensus estimate for CVNA’s loss per share has widened by a penny in the past seven days. Its bottom-line estimates imply growth of 3.1% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 10.2%.
CVNA surpassed earnings estimates in each of the trailing four quarters, the average surprise being 63.87%. This is depicted in the graph below:
In third-quarter 2023, Carvana reported quarterly earnings of 23 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred a loss of $2.67 per share in the year-ago quarter. The company posted revenues of $2.77 billion in the quarter, outpacing the Zacks Consensus Estimate of $2.74 billion but falling 18% year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Carvana in fourth-quarter 2023, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: CVNA has an Earnings ESP of -18.37%. This is because the Most Accurate Estimate is pegged at a loss of $1.11 per share, wider than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
Carvana’s cost-cutting efforts are paying off. It has completed $1.2 billion of annualized selling, general and administrative expense reductions since the second quarter of 2022. In the last reported quarter, the company continued to achieve its goal of generating positive adjusted EBITDA. For the fourth quarter of 2023, the used car auto e-retailer expects GPU to exceed $5,000, which is likely to have boosted the result of the quarter to be reported.
On the flip side, the used car auto e-retailer’s revenues are taking a hit amid a decline in units sold. Revenues in the last reported quarter fell 18.1% year over year, owing to a decline of 21% and 14.4% in retail and wholesale units sold, respectively. For fourth-quarter 2023, the company expects retail unit sales to decline sequentially due to industry and seasonal patterns, which is likely to have hurt the result of the quarter to be reported.
Earnings Whispers for Other Auto Stocks
Rivian Automotive, Inc. (RIVN - Free Report) is scheduled to post fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate is pegged at a loss of $1.39 cents per share. The company has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RIVN surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.40%.
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
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Carvana (CVNA) to Report Q4 Earnings: What's in the Cards?
Carvana Co. (CVNA - Free Report) is slated to release fourth-quarter 2023 results on Feb 22, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share and revenues is pegged at 94 cents and $2.55 billion, respectively.
For the fourth quarter, the consensus estimate for CVNA’s loss per share has widened by a penny in the past seven days. Its bottom-line estimates imply growth of 3.1% from the year-ago reported number.
The Zacks Consensus Estimate for its quarterly revenues suggests a year-over-year decline of 10.2%.
CVNA surpassed earnings estimates in each of the trailing four quarters, the average surprise being 63.87%. This is depicted in the graph below:
Carvana Co. Price and EPS Surprise
Carvana Co. price-eps-surprise | Carvana Co. Quote
Q3 Highlights
In third-quarter 2023, Carvana reported quarterly earnings of 23 cents per share, in contrast to the Zacks Consensus Estimate of a loss of 85 cents. The company had incurred a loss of $2.67 per share in the year-ago quarter. The company posted revenues of $2.77 billion in the quarter, outpacing the Zacks Consensus Estimate of $2.74 billion but falling 18% year over year.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Carvana in fourth-quarter 2023, as it does not have the right combination of the two key ingredients. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Earnings ESP: CVNA has an Earnings ESP of -18.37%. This is because the Most Accurate Estimate is pegged at a loss of $1.11 per share, wider than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #3.
Things to Note
Carvana’s cost-cutting efforts are paying off. It has completed $1.2 billion of annualized selling, general and administrative expense reductions since the second quarter of 2022. In the last reported quarter, the company continued to achieve its goal of generating positive adjusted EBITDA. For the fourth quarter of 2023, the used car auto e-retailer expects GPU to exceed $5,000, which is likely to have boosted the result of the quarter to be reported.
On the flip side, the used car auto e-retailer’s revenues are taking a hit amid a decline in units sold. Revenues in the last reported quarter fell 18.1% year over year, owing to a decline of 21% and 14.4% in retail and wholesale units sold, respectively. For fourth-quarter 2023, the company expects retail unit sales to decline sequentially due to industry and seasonal patterns, which is likely to have hurt the result of the quarter to be reported.
Earnings Whispers for Other Auto Stocks
Rivian Automotive, Inc. (RIVN - Free Report) is scheduled to post fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate is pegged at a loss of $1.39 cents per share. The company has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
RIVN surpassed earnings estimates in each of the trailing four quarters, the average surprise being 15.40%.
Nikola Corporation (NKLA - Free Report) is scheduled to post fourth-quarter earnings on Feb 22. The Zacks Consensus Estimate is pegged at a loss of 16 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
NKLA surpassed earnings estimates in three of the trailing four quarters and missed once, the average negative surprise being 14.16%.
Fisker Inc. is scheduled to post fourth-quarter earnings on Feb 26. The Zacks Consensus Estimate is pegged at a loss of 20 cents per share. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
FSR surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 23.37%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.