Carvana Q4 Earnings Preview: Improving Profitability, Growing Revenue, EV Sales Top Items To Watch

As Carvana Co (CVNA) prepares to report its fourth-quarter financial results, investors are eager to see if the used car retailer can maintain its streak of profitability and analyst beats. With a strong momentum and a growing presence in the electric vehicle (EV) market, Carvana is poised to deliver another impressive quarter. Here are the key items to watch:



1. Improving Profitability: Carvana has reported a profit per share in the last three quarters, with earnings per share of 64 cents, 14 cents, and 23 cents, respectively. Analysts expect the company to report fourth-quarter earnings per share of 29 cents, up from a loss of $1.00 per share in last year's fourth quarter. Investors will be looking for continued improvement in profitability, as well as any commentary from management on cost-cutting measures and margin expansion.
2. Growing Revenue: Carvana has consistently beaten analyst estimates for revenue in recent quarters. Analysts expect the company to report fourth-quarter revenue of $3.31 billion, up from $2.42 billion in last year's fourth quarter. This would mark four straight quarters of revenue of $3 billion or more. Investors will be watching for any signs of slowing growth or changes in the company's revenue guidance.
3. EV Sales and Market Share: Carvana has a leadership position in the used vehicle market, with 5.7% of its used vehicles sold being electric vehicles, compared to 1.3% for the overall used car market. The company's expanding presence in the EV market is a positive development, as it allows Carvana to tap into a growing market and increase its overall revenue and market share. Investors will be looking for any updates on Carvana's EV sales and market share, as well as any plans to further expand its EV offerings.
4. Unit Sales and Profit per Vehicle: Carvana sold 108,651 vehicles in the third quarter, up 34% year-over-year. This increase in unit sales demonstrates the company's growing market share and customer base. Investors will be watching for any updates on Carvana's unit sales and profit per vehicle, as these metrics indicate the company's improving profitability and growth.



In conclusion, Carvana's fourth-quarter earnings report is expected to be another strong performance, with improving profitability, growing revenue, and a growing presence in the electric vehicle market. Investors will be watching for any updates on these key items, as well as any commentary from management on the company's future prospects. As Carvana continues to execute on its growth strategy, it is well-positioned to maintain its streak of profitability and analyst beats.