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.
PREVIOUS POST
Solar Stocks Struggle Under Storm Clouds
NEXT POST