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Carvana (CVNA) Stock Barely Moves Since Q2 Earnings Beat
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Shares of Carvana Co. (CVNA - Free Report) have barely moved since the company reported second-quarter 2024 results on Jul 31, after market close. The used car e-retailer reported earnings of 14 cents per share, beating the Zacks Consensus Estimate of breakeven earnings. It had incurred a loss of 55 cents per share in the year-ago quarter. Revenues of $3.41 billion beat the Zacks Consensus Estimate of $3.23 billion and rose 15% year over year.
Total gross profit amounted to $715 million, up 43% year over year. Total gross profit per unit (GPU) was $7,049, rising from $529 in the year-ago period but missing our estimate of $8,162. SG&A expenses were $455 million, up 0.6% year over year. Carvana achieved an adjusted EBITDA of $355 million for the second quarter of 2024. Adjusted EBITDA margin in the quarter under review was a record 10.4%, up from 5.2% in the second quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $2.41 billion in the quarter, rising 22.9% year over year and topping our estimate of $2.23 billion on the back of higher-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers rose 32.5% to 101,440 from the prior-year period and exceeded our estimate of 89,593 units. Gross profit amounted to $347 million, increasing 70.1% year over year. Gross profit per unit came in at $3,421, significantly up from $2,666 generated in the year-ago period as well as ahead of our expectations of $2,393.
In the second quarter, wholesale vehicle sales totaled $720 million, down 7.3% year over year. Sales breezed past our estimate of $560.2 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 8.4% to 50,368 from the prior-year period and exceeded our estimate of 46,809 units. Gross profit came in at $89 million, increasing 36.9% from the corresponding quarter of 2023. GPU came in at $878, up 3.4% year over year. However, it lagged our estimate of $1,791.
In the period under consideration, other sales and revenues rose 21.3% year over year to $279 million and beat our forecast of $201 million. Gross profit was $279 million, up 21.3% year over year. GPU came in at $2,750, which declined 8.5% year over year and missed our estimate of $3,978.
Financial Position
Carvana had cash and cash equivalents of $542 million as of Jun 30, 2024, compared with $530 million as of Dec 31, 2023. Long-term debt was $5.43 billion as of Jun 30, 2024, compared with $5.42 billion recorded on Dec 31, 2023.
Outlook
Carvana expects a sequential increase in retail unit sales in the third quarter of 2024. For full-year 2024, it expects adjusted EBITDA in the range of $1-$1.2 billion. The company recorded an adjusted EBITDA of $339 million in 2023.
The consensus estimate for DORM’s 2024 sales and earnings suggests a year-over-year growth of 3.85% and 35.4%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 14.73%, respectively. EPS estimates for 2024 and 2025 have improved 14 cents and 19 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.
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Carvana (CVNA) Stock Barely Moves Since Q2 Earnings Beat
Shares of Carvana Co. (CVNA - Free Report) have barely moved since the company reported second-quarter 2024 results on Jul 31, after market close. The used car e-retailer reported earnings of 14 cents per share, beating the Zacks Consensus Estimate of breakeven earnings. It had incurred a loss of 55 cents per share in the year-ago quarter. Revenues of $3.41 billion beat the Zacks Consensus Estimate of $3.23 billion and rose 15% 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 $715 million, up 43% year over year. Total gross profit per unit (GPU) was $7,049, rising from $529 in the year-ago period but missing our estimate of $8,162. SG&A expenses were $455 million, up 0.6% year over year. Carvana achieved an adjusted EBITDA of $355 million for the second quarter of 2024. Adjusted EBITDA margin in the quarter under review was a record 10.4%, up from 5.2% in the second quarter of 2023.
Segmental Performance
Retail vehicle sales totaled $2.41 billion in the quarter, rising 22.9% year over year and topping our estimate of $2.23 billion on the back of higher-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers rose 32.5% to 101,440 from the prior-year period and exceeded our estimate of 89,593 units. Gross profit amounted to $347 million, increasing 70.1% year over year. Gross profit per unit came in at $3,421, significantly up from $2,666 generated in the year-ago period as well as ahead of our expectations of $2,393.
In the second quarter, wholesale vehicle sales totaled $720 million, down 7.3% year over year. Sales breezed past our estimate of $560.2 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 8.4% to 50,368 from the prior-year period and exceeded our estimate of 46,809 units. Gross profit came in at $89 million, increasing 36.9% from the corresponding quarter of 2023. GPU came in at $878, up 3.4% year over year. However, it lagged our estimate of $1,791.
In the period under consideration, other sales and revenues rose 21.3% year over year to $279 million and beat our forecast of $201 million. Gross profit was $279 million, up 21.3% year over year. GPU came in at $2,750, which declined 8.5% year over year and missed our estimate of $3,978.
Financial Position
Carvana had cash and cash equivalents of $542 million as of Jun 30, 2024, compared with $530 million as of Dec 31, 2023. Long-term debt was $5.43 billion as of Jun 30, 2024, compared with $5.42 billion recorded on Dec 31, 2023.
Outlook
Carvana expects a sequential increase in retail unit sales in the third quarter of 2024. For full-year 2024, it expects adjusted EBITDA in the range of $1-$1.2 billion. The company recorded an adjusted EBITDA of $339 million in 2023.
Zacks Rank & Other Key Picks
CVNA currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the auto space are Dorman Products, Inc. (DORM - Free Report) , BYD Company Limited (BYDDY - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for DORM’s 2024 sales and earnings suggests a year-over-year growth of 3.85% and 35.4%, respectively. EPS estimates for 2024 and 2025 have improved 51 cents and 37 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for BYDDY’s 2024 sales and earnings suggests year-over-year growth of 21.11% and 14.73%, respectively. EPS estimates for 2024 and 2025 have improved 14 cents and 19 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for PLOW’s 2024 sales and earnings suggests year-over-year growth of 6.45% and 60.4%, respectively. EPS estimates for 2024 and 2025 have improved 15 cents and 2 cents, respectively, in the past 30 days.