English
Français
Deutsch
Italiano
Português
Русский
Español
简体中文
日本語
Carvana
‘s third-quarter sales could offer investors a pleasant surprise, William Blair says.
William Blair analyst Sharon Zackfia projects that online used car retailer
Carvana
(ticker: CVNA) sold roughly 80,000 cars in its third quarter, a 5% increase from the prior quarter. That is above the consensus call on FactSet of 77,609, and would mark the company’s first sequential quarterly increase in retail units sold since the 2022 June quarter.
The company previously reported second-quarter retail units sold of 76,530 in July, down 35% from the year-ago period. Carvana attributed the drop to reduced inventory size, a decline in advertising, and the rise in interest rates. The company has said it expects similar results for third-quarter retail units sold.
“Over the longer term, we continue to believe value exists in Carvana’s customer-friendly, digitally enabled model, as evidenced by continued market share gains notwithstanding the difficult industry backdrop,” Zackfia said. She rates the stock as Market Perform without a price target. The stock was down 2.2% Wednesday to $30.98.
Carvana is scheduled to report third-quarter financial results after the market closes on Nov. 2. Shares of the car dealer have surged 568% in 2023, and are on pace for their best year ever, according to Dow Jones Market Data. This year’s stock surge comes after shares plummeted 98% in 2022.
The company’s 2023 second quarter, reported in July, was its best yet in terms of adjusted Ebitda, or earnings before interest, taxes, depreciation, and amortization. Then in August, Carvana increased its profit outlook amid loan sales.
Write to Angela Palumbo at [email protected]
Read the full article here
