Carvana's Ongoing Turnaround Efforts

Carvana's Ongoing Turnaround Efforts Show Positive Results

Carvana recently reported a narrower loss in its latest quarter, signaling progress in its ongoing turnaround efforts. The online used-car seller reduced its loss to $114 million, or $1 per share, for the fourth quarter ended Dec. 31, compared to a loss of $806 million, or $7.61 per share, a year prior - surpassing analysts' expectations.

Financial Figures

• Sales: Declined by 15% to $2.42 billion from $2.64 billion.
• Analysts' Expectations: Expected a loss of 82 cents per share and $2.56 billion in sales.

Performance

• Retail Units Sold: Decreased by 13% to 76,090.
• Market Outlook: Carvana forecasts retail units sold to increase slightly year-over-year in the first quarter.

Looking Ahead

• Financial Goals: Anticipate adjusted earnings before interest, taxes, depreciation, and amortization to exceed $100 million in the first quarter.
• Long-Term Projections: Expect growth in retail units sold and adjusted EBITDA for fiscal 2024 compared to fiscal 2023.

In a letter to investors, Carvana expressed confidence in its strategic shift towards operational efficiencies, citing significant gains that position the company for profitable growth in the future.