Carvana's Q4 Earnings and Sales Exceed Estimates, Rise Y/Y

Used car e-retailer Carvana CVNA reported fourth-quarter earnings of 56 cents per share, which breezed past the Zacks Consensus Estimate of 24 cents and the year-ago quarter’s loss of $1 per share. Better-than-expected volumes and gross profits from wholesale vehicle sales led to the outperformance. Revenues of $3.55 billion beat the Zacks Consensus Estimate of $3.33 billion and rose 46.3% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Carvana Co. Price, Consensus and EPS Surprise Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. QuoteKey HighlightsTotal gross profit amounted to $763 million, up 89.8% year over year. Total gross profit per unit (GPU) was $6,671, rising from $5,283 in the year-ago period and exceeding our estimate of $5,945. SG&A expenses were $494 million, up 12.5% year over year. Carvana achieved an adjusted EBITDA of $359 million for the fourth quarter of 2024. Adjusted EBITDA margin in the quarter under review was 10.1%, up from 2.5% in the fourth quarter of 2023.Segmental PerformanceRetail vehicle sales totaled $2.55 billion in the quarter, rising 43.6% year over year on the back of higher-than-expected sales volume. However, it lagged our estimate of $2.58 billion. During the reported quarter, the number of vehicles sold to retail customers rose 50.3% to 114,379 from the prior-year period and exceeded our estimate of 112,021 units. Gross profit amounted to $369 million, up 72.4% year over year. Gross profit per unit came in at $3,226, significantly up from $2,812 generated in the year-ago period but missed our expectation of the $3,278.In the fourth quarter, wholesale vehicle sales totaled $678 million, up 35.9% year over year. Sales breezed past our estimate of $531.5 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 43% to 48,770 from the prior-year period but lagged our estimate of 56,392 units. Gross profit came in at $77 million, rocketing 92.5% from the corresponding quarter of 2023. GPU came in at $674, up 28.1% year over year and above our estimate of $563.In the period under consideration, other sales and revenues rose 114.2% year over year to $317 million and beat our forecast of $263.8 million. Gross profit was $317 million, up 114.2% year over year. GPU came in at $2,771, up 42.5% year over year. It beat our estimate of $2,104.Financial PositionCarvana had cash and cash equivalents of $1.72 billion as of Dec. 31, 2024, compared with $530 million as of Dec. 31, 2023. Long-term debt was $5.26 billion as of Dec. 31, 2024, compared with $5.42 billion recorded on Dec. 31, 2023.Q1 & 2025 OutlookCarvana expects significant growth in both retail units sold and Adjusted EBITDA in full year 2025, including a sequential rise in both retail units sold and Adjusted EBITDA in the first quarter of 2025, if the environment remains stable. Zacks Rank & Other Key PicksCVNA currently flaunts a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the auto space are Dana DAN, Garrett Motion GTX and Custom Truck One Source CTOS. While DAN sports a Zacks Rank #1 at present, GTX and CTOS carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for DAN’s 2025 earnings has moved north 15.4% over the past 30 days and suggests year-over-year growth of 79.17%. It is currently pegged at $1.50 per share.The Zacks Consensus Estimate for GTX’s 2025 earnings has moved up by 1 cent over the past 30 days and suggests year-over-year growth of 17.92%. It is currently pegged at $1.25 per share.The Zacks Consensus Estimate for CTOS’ 2025 loss has remained steady at 5 cents per share over the past 90 days and suggests year-over-year growth of 75.05%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dana Incorporated (DAN): Free Stock Analysis Report Carvana Co. (CVNA): Free Stock Analysis Report Garrett Motion Inc. (GTX): Free Stock Analysis Report Custom Truck One Source, Inc. (CTOS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks