When Carvana Co. (NYSE: CVNA) reported its most recent quarterly results after the markets closed on Wednesday, the company posted a net loss of $0.37 per share and $475.3 million in revenue. The consensus estimates had called for a net loss of $0.34 per share and $424.1 million in revenue for the second quarter. The same period of last year reportedly had a per-share net loss of $0.28 and revenue of $209.37 million.
During the most recent quarter, retail units sold totaled 22,570, an increase of 111% from the second quarter of last year.
This quarter the company achieved record total gross profit per unit (GPU) of $2,173, providing a clear line of sight to the $3,000 midterm goal and the path to profitability. In fact, the GPU gains in the quarter, along with further operating leverage in the business, drove net loss margins to 10.8% from 18.6% in the same period last year.
Looking ahead to the third quarter, Carvana expects to see revenues in the range of $480 million to $520 million with retail unit sales of 23,000 to 25,000. The consensus estimates call for a net loss of $0.30 per share and $478.97 million in revenue for the quarter.
Ernie Garcia, Carvana co-founder and CEO, commented:
Second quarter results exceeded our prior guidance. We delivered triple-digit growth in retail units sold, revenue, and gross profit dollars, and drove a record total GPU of $2,173. We achieved these results while opening 9 new markets and 4 new car vending machines, and Carvana’s network now covers half of the U.S. population. We had a strong first half of the year and are on track for our fifth consecutive year of triple-digit revenue growth in 2018. We are well-positioned to benefit from continued momentum as consumers demand a new way to buy a car.
Shares of Carvana were last seen up about 17% at $55.12 on Thursday, with a consensus analyst price target of $39.45 and a 52-week trading range of $12.17 to $55.99.
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.