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Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Rise Y/Y
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Carvana Co. (CVNA - Free Report) incurred a loss of 41 cents per share for first-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 76 cents and the year-ago quarter loss of $1.51 per share, thanks to higher-than-expected sales across all segments. Revenues of $3.06 billion topped the Zacks Consensus Estimate of $2.71 billion and rose 17.5% year over year.
Key Highlights
Total gross profit amounted to $591 million, up 73.3% year over year. Total gross profit per unit (GPU) was $6,432, reflecting a surge of 49.5% year over year and beating our estimate of $5,903. SG&A expenses were $456 million, down 3.3% year over year. Carvana achieved an adjusted EBITDA of $235 million for the first quarter of 2024. Adjusted EBITDA margin in the quarter under review was a record 7.7% against negative 0.9% in the first quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $2.17 billion in the quarter, rising 19% year over year and topping our estimate of $2.07 billion on the back of higher-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers rose 15.9% to 91,878 from the prior-year period and exceeded our estimate of 84,827 units. Gross profit amounted to $283 million, implying a jump of 157.3% year over year. Gross profit per unit came in at $3,080, significantly up from $1,388 generated in the year-ago period as well as ahead of our expectations of $2,862.
In the first quarter, wholesale vehicle sales totaled $657 million, up 6.3% year over year. Sales breezed past our estimate of $398 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 25.8% to 44,155 from the prior year period and exceeded our estimate of 39,133 units. Gross profit came in at $79 million, increasing 13% from the corresponding quarter of 2023. GPU came in at $860, down 2.6% year over year. However, it outpaced our estimate of $765.
In the period under consideration, other sales and revenues rose 42.2% year over year to $229 million and beat our forecast of $142.8 million. Gross profit was $229 million, up 42.2% year over year. GPU came in at $2,492, up 22.6% year over year, and beat our estimate of $2,275.
Financial Position
Carvana had cash and cash equivalents of $252 million as of Mar 31, 2024, compared with $530 million on Dec 31, 2023. Long-term debt was $5.54 billion as of Mar 31, 2024, compared with $5.41 billion recorded on Dec 31, 2023.
Outlook
Carvana expects a sequential increase in its year-over-year growth rate of retail unit sales in the second quarter of 2024. It also anticipates a sequential increase in adjusted EBITDA in the second quarter of 2024. For the full year 2024, Carvana envisions its retail sales units and adjusted EBITDA to grow year over year.
Group 1 Automotive (GPI - Free Report) reported first-quarter 2024 adjusted EPS of $9.49, missing the Zacks Consensus Estimate of $9.52 and falling 13.2% year over year. The automotive retailer registered net sales of $4.5 billion, beating the Zacks Consensus Estimate of $4.3 billion. Also, the top line rose from the year-ago quarter’s $4.13 billion. Group 1 had cash and cash equivalents of $41.9 million as of Mar 31, 2024, down from $57.2 million as of 2023-end. Total debt was $2.6 billion as of Mar 31, 2024, up from $2.1 million as of Dec 31, 2023.
Lithia Motors (LAD - Free Report) reported first-quarter 2024 adjusted EPS of $6.11, which declined from the prior-year quarter’s $8.44 and missed the Zacks Consensus Estimate of $7.85. Total revenues jumped 23% year over year to $8.56 billion. The top line outpaced the Zacks Consensus Estimate of $8.5 billion. Lithia had cash/cash equivalents/restricted cash of $404.6 million as of Mar 31, 2024, down from $941.1 million as of Dec 31, 2023. Long-term debt was $5.7 billion as of Mar 31, 2024, up from $5.5 billion as of Dec 31, 2023.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2024 adjusted EPS of $1.36, topping the Zacks Consensus Estimate of $1.23 and rising 2.2% from the year-ago quarter figure. Total revenues amounted to $3.38 billion, marginally missing the Zacks Consensus Estimate of $3.39 billion and declining from the year-ago figure of $3.49 billion.As of Mar 31, Sonic’s cash and cash equivalents amounted to $15.1 million. Long-term debt at the end of the quarter was $1.58 billion.
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Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Rise Y/Y
Carvana Co. (CVNA - Free Report) incurred a loss of 41 cents per share for first-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 76 cents and the year-ago quarter loss of $1.51 per share, thanks to higher-than-expected sales across all segments. Revenues of $3.06 billion topped the Zacks Consensus Estimate of $2.71 billion and rose 17.5% year over year.
Key Highlights
Total gross profit amounted to $591 million, up 73.3% year over year. Total gross profit per unit (GPU) was $6,432, reflecting a surge of 49.5% year over year and beating our estimate of $5,903. SG&A expenses were $456 million, down 3.3% year over year. Carvana achieved an adjusted EBITDA of $235 million for the first quarter of 2024. Adjusted EBITDA margin in the quarter under review was a record 7.7% against negative 0.9% in the first quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $2.17 billion in the quarter, rising 19% year over year and topping our estimate of $2.07 billion on the back of higher-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers rose 15.9% to 91,878 from the prior-year period and exceeded our estimate of 84,827 units. Gross profit amounted to $283 million, implying a jump of 157.3% year over year. Gross profit per unit came in at $3,080, significantly up from $1,388 generated in the year-ago period as well as ahead of our expectations of $2,862.
In the first quarter, wholesale vehicle sales totaled $657 million, up 6.3% year over year. Sales breezed past our estimate of $398 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 25.8% to 44,155 from the prior year period and exceeded our estimate of 39,133 units. Gross profit came in at $79 million, increasing 13% from the corresponding quarter of 2023. GPU came in at $860, down 2.6% year over year. However, it outpaced our estimate of $765.
In the period under consideration, other sales and revenues rose 42.2% year over year to $229 million and beat our forecast of $142.8 million. Gross profit was $229 million, up 42.2% year over year. GPU came in at $2,492, up 22.6% year over year, and beat our estimate of $2,275.
Financial Position
Carvana had cash and cash equivalents of $252 million as of Mar 31, 2024, compared with $530 million on Dec 31, 2023. Long-term debt was $5.54 billion as of Mar 31, 2024, compared with $5.41 billion recorded on Dec 31, 2023.
Outlook
Carvana expects a sequential increase in its year-over-year growth rate of retail unit sales in the second quarter of 2024. It also anticipates a sequential increase in adjusted EBITDA in the second quarter of 2024. For the full year 2024, Carvana envisions its retail sales units and adjusted EBITDA to grow year over year.
Carvana currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Group 1 Automotive (GPI - Free Report) reported first-quarter 2024 adjusted EPS of $9.49, missing the Zacks Consensus Estimate of $9.52 and falling 13.2% year over year. The automotive retailer registered net sales of $4.5 billion, beating the Zacks Consensus Estimate of $4.3 billion. Also, the top line rose from the year-ago quarter’s $4.13 billion. Group 1 had cash and cash equivalents of $41.9 million as of Mar 31, 2024, down from $57.2 million as of 2023-end. Total debt was $2.6 billion as of Mar 31, 2024, up from $2.1 million as of Dec 31, 2023.
Lithia Motors (LAD - Free Report) reported first-quarter 2024 adjusted EPS of $6.11, which declined from the prior-year quarter’s $8.44 and missed the Zacks Consensus Estimate of $7.85. Total revenues jumped 23% year over year to $8.56 billion. The top line outpaced the Zacks Consensus Estimate of $8.5 billion. Lithia had cash/cash equivalents/restricted cash of $404.6 million as of Mar 31, 2024, down from $941.1 million as of Dec 31, 2023. Long-term debt was $5.7 billion as of Mar 31, 2024, up from $5.5 billion as of Dec 31, 2023.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2024 adjusted EPS of $1.36, topping the Zacks Consensus Estimate of $1.23 and rising 2.2% from the year-ago quarter figure. Total revenues amounted to $3.38 billion, marginally missing the Zacks Consensus Estimate of $3.39 billion and declining from the year-ago figure of $3.49 billion.As of Mar 31, Sonic’s cash and cash equivalents amounted to $15.1 million. Long-term debt at the end of the quarter was $1.58 billion.