Key Highlights

  • Consensus EPS of 0.44 compares with second-quarter diluted EPS of 0.42, against 0.26 a year earlier.
  • Consensus revenue of USD 7.71 billion compares with second-quarter revenues of USD 7,376 million, against USD 4,840 million.
  • Retail vehicle unit sales were 197,325 against 143,280, and wholesale vehicle unit sales were 105,052 against 72,770.
  • Operating income was USD 680 million against USD 511 million, and gross profit was USD 1,384 million.

Carvana (NYSE:CVNA) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.44 on revenue of USD 7.71 billion, and the company has a market capitalization of USD 62.30 billion.

Carvana is an online retailer of used vehicles. Second-quarter revenues were USD 7,376 million against USD 4,840 million, and net income attributable to Carvana was USD 310 million against USD 183 million.

Estimates Against the Last Reported Quarter

The EPS estimate of 0.44 is above the second-quarter diluted EPS of 0.42, which compared with 0.26 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 7.71 billion is above the USD 7,376 million reported, which compared with USD 4,840 million.

Basic EPS was 0.43 against 0.27. Retail vehicle sales, net were USD 5,507 million against USD 3,405 million, and wholesale sales and revenues were USD 1,343 million against USD 1,024 million.

What the Filing Gives and What the Sources Leave Open

The sources supplied include no earnings call transcript or published guidance, so there are no management ranges to set against the estimates. The filing carries no third-quarter figures.

The filing's risk language states that sustained increases in gasoline prices, including as a result of the conflict in Iran, have pressured consumer disposable income and could reduce the ability to purchase vehicles.

Unit Sales and Per-Unit Detail

Retail vehicle unit sales rose 37.7% to 197,325 and wholesale vehicle unit sales rose 44.4% to 105,052. Retail revenue per unit was USD 27,908 against USD 23,765, and wholesale revenue per unit was USD 10,633 against USD 10,746.

Total gross profit per retail unit was USD 7,014 against USD 7,426, and retail vehicle gross profit per unit was USD 3,547. On a non-GAAP basis, total gross profit per retail unit was USD 7,125 against USD 7,580.

Cost Lines, Income and Debt

SG&A expenses were USD 704 million against USD 551 million, and interest expense, net was USD 101 million against USD 143 million. Net income before income taxes was USD 579 million against USD 308 million, and net income was USD 513 million against USD 308 million.

Net income attributable to non-controlling interests was USD 203 million against USD 125 million. Long-term debt, excluding current portion, was USD 4,854 million against USD 4,830 million. Operating income was USD 680 million against USD 511 million, gross profit was USD 1,384 million against USD 1,064 million, and cost of sales was USD 5,992 million against USD 3,776 million. The estimates table lists a market capitalization of USD 62.30 billion.

Markers for the Release

Reported EPS against 0.44 and revenues against USD 7.71 billion are the headline comparisons. Other markers are retail units, gross profit per unit and SG&A expenses.