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Carvana (CVNA) Q4 Earnings Miss Estimates, Sales Rise Y/Y
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Carvana Co. (CVNA - Free Report) incurred a wider-than-expected fourth-quarter 2021 loss of $1.02 per share. In the year-ago quarter, it had incurred a loss of 41 cents a share. The Zacks Consensus Estimate was pegged at a loss of 79 cents. The underperformance stemmed from lower-than-expected gross profit per unit from ‘used vehicle’ sales.
Fourth-quarter revenues of $3,753 million outpaced the Zacks Consensus Estimate of $3,562.4 million and surged 105.5% year over year.
During the reported quarter, the number of used vehicles sold to retail customers grew 56.6% to 113,016 from the prior-year period’s 72,172. Total gross profit amounted to $516 million, up a whopping 111% year over year. SG&A expenses were $620 million, flaring up 81.3%.
Segmental Performance
Used vehicle sales totaled $2,897 million in the fourth quarter, rocketing 93.6% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,749 million. Gross profit per unit for used vehicles amounted to $1,495, rising 18.2% year over year. The metric lagged the Zacks Consensus Estimate of $1,632.
In the reported quarter, wholesale vehicle sales summed $571 million, soaring a whopping 207% year over year. The figure also topped the consensus mark of $549 million. Gross profit per unit for wholesale vehicles came in at $549, shooting up 408.3% year over year. The metric beat the consensus mark of $416 million.
In the period in consideration, other sales and revenues shot up 96.6% year over year to $285 million. The figure also trumped the Zacks Consensus Estimate of $265 million. Gross profit per unit came in at $2,522, surging 25.7%. The metric outpaced the Zacks Consensus Estimate of $2,443.
Financial Position
Carvana had cash and cash equivalents of $403 million as of Dec 31, 2021, compared with $301 million on Dec 31, 2020. Long-term debt amounted to $3,208 million as of Dec 31, 2021, up from $1,167 million recorded on Dec 31, 2020.
2022 Guidance
For 2022, retail unit sales are expected to grow more than 550,000. Following the first quarter, in the second through the fourth quarter taken in aggregate, total GPU of more than $4,000 and an almost breakeven EBITDA margin is expected. Carvana anticipates supply chain disruption brought by the Omicron variant, severe winter storms and the recent rapid increase in short-term interest rates to weigh on first quarter 2022 total GPU and SG&A per retail unit sold, leading to an expected EBITDA margin loss in the mid-single-digit range.
AutoNation has an expected earnings growth rate of 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.8% 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 39.34%, on average. The stock has also rallied 41.9% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 14.2% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 9.9% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% 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 9.75%, on average. The stock has also rallied 16% over a year.
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Carvana (CVNA) Q4 Earnings Miss Estimates, Sales Rise Y/Y
Carvana Co. (CVNA - Free Report) incurred a wider-than-expected fourth-quarter 2021 loss of $1.02 per share. In the year-ago quarter, it had incurred a loss of 41 cents a share. The Zacks Consensus Estimate was pegged at a loss of 79 cents. The underperformance stemmed from lower-than-expected gross profit per unit from ‘used vehicle’ sales.
Fourth-quarter revenues of $3,753 million outpaced the Zacks Consensus Estimate of $3,562.4 million and surged 105.5% year over year.
During the reported quarter, the number of used vehicles sold to retail customers grew 56.6% to 113,016 from the prior-year period’s 72,172. Total gross profit amounted to $516 million, up a whopping 111% year over year. SG&A expenses were $620 million, flaring up 81.3%.
Segmental Performance
Used vehicle sales totaled $2,897 million in the fourth quarter, rocketing 93.6% year over year. The sales figure also beat the Zacks Consensus Estimate of $2,749 million. Gross profit per unit for used vehicles amounted to $1,495, rising 18.2% year over year. The metric lagged the Zacks Consensus Estimate of $1,632.
In the reported quarter, wholesale vehicle sales summed $571 million, soaring a whopping 207% year over year. The figure also topped the consensus mark of $549 million. Gross profit per unit for wholesale vehicles came in at $549, shooting up 408.3% year over year. The metric beat the consensus mark of $416 million.
In the period in consideration, other sales and revenues shot up 96.6% year over year to $285 million. The figure also trumped the Zacks Consensus Estimate of $265 million. Gross profit per unit came in at $2,522, surging 25.7%. The metric outpaced the Zacks Consensus Estimate of $2,443.
Financial Position
Carvana had cash and cash equivalents of $403 million as of Dec 31, 2021, compared with $301 million on Dec 31, 2020. Long-term debt amounted to $3,208 million as of Dec 31, 2021, up from $1,167 million recorded on Dec 31, 2020.
2022 Guidance
For 2022, retail unit sales are expected to grow more than 550,000. Following the first quarter, in the second through the fourth quarter taken in aggregate, total GPU of more than $4,000 and an almost breakeven EBITDA margin is expected. Carvana anticipates supply chain disruption brought by the Omicron variant, severe winter storms and the recent rapid increase in short-term interest rates to weigh on first quarter 2022 total GPU and SG&A per retail unit sold, leading to an expected EBITDA margin loss in the mid-single-digit range.
Zacks Rank & Key Picks
Currently, CVNA has a Zacks Rank #3 (Hold).
Better-ranked players in the retail-wholesale space include AutoNation (AN - Free Report) and Asbury Automotive Group (ABG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Group 1 Automotive (GPI - Free Report) , 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 2.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.8% 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 39.34%, on average. The stock has also rallied 41.9% over a year.
Asbury has an expected earnings growth rate of 21.7% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 14.2% upward in the past 60 days.
Asbury’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. ABG pulled off a trailing four-quarter earnings surprise of 29.6%, on average. The stock has grown 9.9% over a year.
Group 1 has an expected earnings growth rate of 1.9% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 2.8% 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 9.75%, on average. The stock has also rallied 16% over a year.