How Carvana Won Big in Its First Post-IPO Earnings

By Chris Lange Updated Jan 12, 11:16AM EST · Published Jun 7, 11:06AM EDT

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

How Carvana Won Big in Its First Post-IPO Earnings — © Thinkstock

When Carvana Co. (NYSE: CVNA) reported its fiscal first-quarter financial results after the markets closed on Tuesday, it was the first public earnings report since the company came public in late April. This online-only used car dealer posted a net loss of $0.28 per share and $159.1 million in revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.29 per share and $157.7 million in revenue.

During the quarter, Carvana sold a total of 8,334 retail units, an increase of 120% from the same period last year. At the same time, revenues grew by roughly the same amount.

In terms of guidance for the second quarter, the company expects to see revenues in the range of $193 million to $203 million and retail unit sales in the range of 10,000 to 10,500. Consensus estimates are a net loss of $0.29 per share and $184.28 million in revenue.

[nativounit]

For the 2017 full year, Carvana expects to see revenues between $850 million and $910 million and retail unit sales in the range of 44,000 to 46,000 (an increase of 18,761 from 2016). The consensus estimates call for a net loss of $1.10 per share and $854.29 million in revenue for the year.

Ernie Garcia, Carvana founder and CEO, commented:

We are excited to announce record revenue in our first earnings report as a newly public company. Our strong performance this quarter reflects a significant increase in retail units, as well as expansion into new markets. During the quarter we made important enhancements to the customer experience through new product development, resulting in ongoing optimization from website through vehicle delivery. We continue to see increased consumer adoption of online car buying across our markets, charting a clear path to consistent growth within the $710 billion U.S. used auto market. Carvana’s unique business model includes proprietary technology and assets, like the vending machines, that deliver customer experiences that position us to execute against our aggressive growth plans.

Shares of Carvana traded up 18% at $11.25 on Wednesday, with a consensus analyst price target of $17.33 and a 52-week range of $8.14 to $13.94.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.