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Carvana (CVNA) Q4 Loss Wider Than Expected, Revenues Fall Y/Y
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Carvana Co. (CVNA - Free Report) incurred a loss of $1 per share for fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 95 cents and the year-ago quarter loss of 97 cents per share. Revenues of $2.42 billion missed the Zacks Consensus Estimate of $2.54 billion and fell 14.7% year over year.
Total gross profit amounted to $402 million, up 108% year over year. Total gross profit per unit (GPU) was $5,283, reflecting a jump of 138.1% year over year, topping our estimate of $5,084. SG&A expenses were $439 million, down 69% year over year. Carvana achieved an adjusted EBITDA of $60 million for the fourth quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $1.77 billion in the quarter, falling 14% year over year and missing our estimate of $1.88 billion amid lower-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers declined 12.5% to 76,090 from the prior-year period and missed our estimate of 79,824 units. Gross profit amounted to $214 million, surging 478.4% year over year. Gross profit per unit came in at $2,812, significantly up from $425 generated in the year-ago period as well as ahead of our expectations of $2,135.
In the fourth quarter, wholesale vehicle sales totaled $499 million, falling 21.2% year over year and lagging our forecast of $572 million. Gross profit came in at $40 million, doubling from the corresponding quarter of 2022 but missing our estimate of $55.8 million. GPU came in at $526, rocketing from $230.
In the period under consideration, other sales and revenues rose 8.8% year over year to $148 million and beat our forecast of $144.6. Gross profit was $148 million, up 8.8% year over year. GPU came in at $1,945, up 24.4% year over year but lagged our estimate of $2,275 million.
Financial Position
Carvana had cash and cash equivalents of $530 million as of Dec 31, 2023 compared with $434 million on Dec 31, 2022. Long-term debt amounted to $5.4 billion as of Dec 31, 2023 compared with $6.57 billion recorded on Dec 31, 2022.
Q1 Outlook
The company expects to generate more than $100 million in adjusted EBITDA in the first quarter of 2024. Carvana expects a sequential increase in wholesale and other GPU in the January-March period. Retail GPU is expected to be at similar levels compared to the fourth quarter of 2023.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.9% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved by $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 19 cents and 6 cents, respectively, in the past 30 days. The trucking giant surpassed earnings estimates in the trailing four quarters, the average surprise being 17.07%.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved by 13 cents and 29 cents, respectively, in the past seven days.
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Carvana (CVNA) Q4 Loss Wider Than Expected, Revenues Fall Y/Y
Carvana Co. (CVNA - Free Report) incurred a loss of $1 per share for fourth-quarter 2023, wider than the Zacks Consensus Estimate of a loss of 95 cents and the year-ago quarter loss of 97 cents per share. Revenues of $2.42 billion missed the Zacks Consensus Estimate of $2.54 billion and fell 14.7% year over year.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Key Highlights
Total gross profit amounted to $402 million, up 108% year over year. Total gross profit per unit (GPU) was $5,283, reflecting a jump of 138.1% year over year, topping our estimate of $5,084. SG&A expenses were $439 million, down 69% year over year. Carvana achieved an adjusted EBITDA of $60 million for the fourth quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $1.77 billion in the quarter, falling 14% year over year and missing our estimate of $1.88 billion amid lower-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers declined 12.5% to 76,090 from the prior-year period and missed our estimate of 79,824 units. Gross profit amounted to $214 million, surging 478.4% year over year. Gross profit per unit came in at $2,812, significantly up from $425 generated in the year-ago period as well as ahead of our expectations of $2,135.
In the fourth quarter, wholesale vehicle sales totaled $499 million, falling 21.2% year over year and lagging our forecast of $572 million. Gross profit came in at $40 million, doubling from the corresponding quarter of 2022 but missing our estimate of $55.8 million. GPU came in at $526, rocketing from $230.
In the period under consideration, other sales and revenues rose 8.8% year over year to $148 million and beat our forecast of $144.6. Gross profit was $148 million, up 8.8% year over year. GPU came in at $1,945, up 24.4% year over year but lagged our estimate of $2,275 million.
Financial Position
Carvana had cash and cash equivalents of $530 million as of Dec 31, 2023 compared with $434 million on Dec 31, 2022. Long-term debt amounted to $5.4 billion as of Dec 31, 2023 compared with $6.57 billion recorded on Dec 31, 2022.
Q1 Outlook
The company expects to generate more than $100 million in adjusted EBITDA in the first quarter of 2024. Carvana expects a sequential increase in wholesale and other GPU in the January-March period. Retail GPU is expected to be at similar levels compared to the fourth quarter of 2023.
Zacks Rank & Key Picks
CVNA currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are General Motors (GM - Free Report) , PACCAR (PCAR - Free Report) and Allison Transmission (ALSN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.9% and 17.2%, respectively. The EPS estimates for 2024 and 2025 have improved by $1.27 and $1.70, respectively, in the past 30 days.
The Zacks Consensus Estimate for PCAR’s 2024 and 2025 EPS has moved up by 19 cents and 6 cents, respectively, in the past 30 days. The trucking giant surpassed earnings estimates in the trailing four quarters, the average surprise being 17.07%.
The Zacks Consensus Estimate for ALSN’s 2024 sales and earnings indicates year-over-year growth of 2.1% and 3.2%, respectively. The EPS estimate for 2024 and 2025 has improved by 13 cents and 29 cents, respectively, in the past seven days.