We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Fall Y/Y
Read MoreHide Full Article
Carvana Co. (CVNA - Free Report) incurred a loss of $1.51 per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.87 as well as $2.89 per share in the year-ago quarter. The outperformance was led by higher-than-expected gross profit across all segments. Revenues of $2,606 million topped the Zacks Consensus Estimate of $2,555 million but fell 25.4% year over year.
During the reported quarter, the number of vehicles sold to retail customers declined 25% to 79,240 from the prior-year period. Total gross profit amounted to $341 million, up 14% year over year. SG&A expenses were $472 million, down 35% year over year.
Retail vehicle sales totaled $1,827 million in the quarter, falling 33.1% year over year but topping the consensus metric of $1,779 million. Gross profit amounted to $110 million, rising 29.4% and beating the consensus estimate of $84 million.
In the first quarter, wholesale vehicle sales totaled $618 million, rising 7.5% year over year and surpassing the consensus estimate of $592 million. Gross profit came in at $70 million, rocketing 204.3% and breezing past the consensus estimate of $17.76 million.
In the period under consideration, other sales and revenues contracted 15.3% year over year to $161 million but came ahead of the consensus mark of $148 million. Gross profit was $161 million, down 15.3% but above the consensus mark of $137 million.
Financial Position
Carvana had cash and cash equivalents of $488 million as of Mar 31, 2023, compared with $434 million on Dec 31, 2022. Long-term debt amounted to $6,533 million as of Mar 31, 2023, compared with $6,574 million recorded on Dec 31, 2022.
Q2 Outlook
The company anticipates attaining positive adjusted EBITDA in the second quarter of 2023. Carvana expects total GPU (non-GAAP) to exceed $5,000, comprising Retail GPU of more than $2,000, Wholesale GPU of more than $1,000 and Other GPU of $2,000.
Other Releases From the Auto Space
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
ORLY had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
Penske Automotive Group (PAG - Free Report) reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. This marked the 12th consecutive earnings beat for the company. The auto retailer registered net sales of $7,339 million, which topped the Zacks Consensus Estimate of $6,833 million. The top line rose 5.3% from the year-ago quarter.
Penske had cash and cash equivalents of $100.6 million as of Mar 31, 2023. The long-term debt amounted to $1,619.8 million, up from $1,546.9 million as of Mar 31, 2023. During the quarter under discussion, PAG repurchased 0.9 million shares of common stock for $110.2 million.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2023 adjusted earnings per share of $1.33, missing the Zacks Consensus Estimate of $1.84. Lower-than-expected sales from the wholesale vehicle segment led to the underperformance. Also, the bottom line fell 43% from $2.33 per share reported in the year-ago quarter. Total revenues amounted to $3,491.2 million, marking an increase of 1%. The figure surpassed the Zacks Consensus Estimate of $3,487 million.
SAH had cash and cash equivalents of $160.2 million as of Mar 31, 2023. The long-term debt amounted to $1,650.8 million as of Mar 31, 2023. The board of directors approved a hike of 3.6% on the quarterly cash dividend, which amounted to 29 cents, payable on Jul 14, 2023, to all stockholders of record as of Jun 15, 2023.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Carvana (CVNA) Q1 Loss Narrower Than Expected, Sales Fall Y/Y
Carvana Co. (CVNA - Free Report) incurred a loss of $1.51 per share in first-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of $1.87 as well as $2.89 per share in the year-ago quarter. The outperformance was led by higher-than-expected gross profit across all segments. Revenues of $2,606 million topped the Zacks Consensus Estimate of $2,555 million but fell 25.4% year over year.
During the reported quarter, the number of vehicles sold to retail customers declined 25% to 79,240 from the prior-year period. Total gross profit amounted to $341 million, up 14% year over year. SG&A expenses were $472 million, down 35% year over year.
Carvana currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
Segmental Performance
Retail vehicle sales totaled $1,827 million in the quarter, falling 33.1% year over year but topping the consensus metric of $1,779 million. Gross profit amounted to $110 million, rising 29.4% and beating the consensus estimate of $84 million.
In the first quarter, wholesale vehicle sales totaled $618 million, rising 7.5% year over year and surpassing the consensus estimate of $592 million. Gross profit came in at $70 million, rocketing 204.3% and breezing past the consensus estimate of $17.76 million.
In the period under consideration, other sales and revenues contracted 15.3% year over year to $161 million but came ahead of the consensus mark of $148 million. Gross profit was $161 million, down 15.3% but above the consensus mark of $137 million.
Financial Position
Carvana had cash and cash equivalents of $488 million as of Mar 31, 2023, compared with $434 million on Dec 31, 2022. Long-term debt amounted to $6,533 million as of Mar 31, 2023, compared with $6,574 million recorded on Dec 31, 2022.
Q2 Outlook
The company anticipates attaining positive adjusted EBITDA in the second quarter of 2023. Carvana expects total GPU (non-GAAP) to exceed $5,000, comprising Retail GPU of more than $2,000, Wholesale GPU of more than $1,000 and Other GPU of $2,000.
Other Releases From the Auto Space
O’Reilly Automotive, Inc. (ORLY - Free Report) reported first-quarter 2023 adjusted earnings per share of $8.28, beating the Zacks Consensus Estimate of $8. Higher-than-expected comps growth resulted in the outperformance. Comps grew 10.8% in the reported quarter and topped the Zacks Consensus Estimate of 6.32%. The bottom line increased from $7.17 in the prior-year quarter. The automotive parts retailer registered quarterly revenues of $3,707.8 million, crossing the consensus mark of $3,564 million. The top line increased 12% year over year.
ORLY had cash and cash equivalents of $59.8 million at the end of the reported quarter, falling from $108.6 million recorded as of 2022 end. Its long-term debt was $4,927.7 million, higher than $4,371.6 million as of Dec 31, 2022.
Penske Automotive Group (PAG - Free Report) reported first-quarter 2023 adjusted earnings of $4.31 per share, which decreased 9% year over year but surpassed the Zacks Consensus Estimate of $4.03. This marked the 12th consecutive earnings beat for the company. The auto retailer registered net sales of $7,339 million, which topped the Zacks Consensus Estimate of $6,833 million. The top line rose 5.3% from the year-ago quarter.
Penske had cash and cash equivalents of $100.6 million as of Mar 31, 2023. The long-term debt amounted to $1,619.8 million, up from $1,546.9 million as of Mar 31, 2023. During the quarter under discussion, PAG repurchased 0.9 million shares of common stock for $110.2 million.
Sonic Automotive, Inc. (SAH - Free Report) registered first-quarter 2023 adjusted earnings per share of $1.33, missing the Zacks Consensus Estimate of $1.84. Lower-than-expected sales from the wholesale vehicle segment led to the underperformance. Also, the bottom line fell 43% from $2.33 per share reported in the year-ago quarter. Total revenues amounted to $3,491.2 million, marking an increase of 1%. The figure surpassed the Zacks Consensus Estimate of $3,487 million.
SAH had cash and cash equivalents of $160.2 million as of Mar 31, 2023. The long-term debt amounted to $1,650.8 million as of Mar 31, 2023. The board of directors approved a hike of 3.6% on the quarterly cash dividend, which amounted to 29 cents, payable on Jul 14, 2023, to all stockholders of record as of Jun 15, 2023.