Particle.news
Download on the App Store

Carvana Shares Sink After Q3 Sales Record as Guidance Points to Possible Slowdown

Investors focused on a possible sequential unit decline despite record sales.

Overview

  • The company sold 155,941 retail vehicles and generated $5.65 billion in revenue, up 55% year over year.
  • Reported earnings were $1.03 per share, while adjusted EPS of $1.50 topped the $1.32 consensus after warrant-value adjustments.
  • Carvana guided to at least 150,000 retail units in the current quarter and said adjusted EBITDA will exceed its prior $2.0–$2.2 billion range.
  • Shares fell roughly 9%–10% during Thursday trading and more than 10% after-hours following the report.
  • Retail gross profit per unit slipped 1.2% to $3,456 and wholesale gross profit fell 6.9% to $866 as investors weighed rising subprime delinquencies and recent industry bankruptcies reported by Fitch and others.