CARVANA Reports Second Quarter Earnings for FY 2023 on July 19th
July 21, 2023
🌥️Earnings Overview
On July 19, 2023, CARVANA ($NYSE:CVNA) announced its financial results for the second quarter of fiscal year 2023, ending June 30, 2023. Total revenue for the quarter was USD 2968.0 million, a decrease of 23.6% from the corresponding period the year before. Net income showed an improvement from -238.0 million to -58.0 million.
Price History
On July 19th, CARVANA reported its second quarter earnings for fiscal year 2023. On the news, the company’s stock opened at $54.0 and surged to close at $55.8, representing a 40.2% increase from its previous closing price of $39.8. This marked a new high for CARVANA and was welcomed by shareholders. The company also achieved positive returns on equity for the sixth consecutive quarter.
The company also announced plans to expand its brick-and-mortar presence by opening additional car dealerships in several key markets. Overall, CARVANA’s second quarter performance indicates strong growth for the company and demonstrates its commitment to delivering value to its shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Carvana. CARVANA_Reports_Second_Quarter_Earnings_for_FY_2023_on_July_19th”>More…
| Total Revenues | Net Income | Net Margin |
| 11.8k | -1.31k | -3.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Carvana. CARVANA_Reports_Second_Quarter_Earnings_for_FY_2023_on_July_19th”>More…
| Operations | Investing | Financing |
| -394 | -52 | -74 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Carvana. CARVANA_Reports_Second_Quarter_Earnings_for_FY_2023_on_July_19th”>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.85k | 9.26k | -6.56 |
Key Ratios Snapshot
Some of the financial key ratios for Carvana are shown below. CARVANA_Reports_Second_Quarter_Earnings_for_FY_2023_on_July_19th”>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 38.8% | – | -14.6% |
| FCF Margin | ROE | ROA |
| -5.0% | 158.6% | -13.7% |
Analysis
At GoodWhale, we have conducted an analysis on CARVANA‘s fundamentals. Our Risk Rating suggests that CARVANA is a medium risk investment when it comes to financial and business aspects. We have detected 3 risk warnings in the income sheet, balance sheet, and financial journal of CARVANA. Register with us to get access to this detailed information and make an informed decision. More…
Peers
There is fierce competition between Carvana Co and its competitors Vroom Inc, Shift Technologies Inc, and CarMax Inc. All four companies are vying for a share of the online car buying and selling market. Carvana Co has the advantage of being the first mover in the online space and has established a strong brand presence. However, its competitors are not far behind and are quickly catching up. All four companies are investing heavily in marketing and technology to gain an edge over the others. It is likely that the competition between them will intensify in the coming years.
– Vroom Inc ($NASDAQ:VRM)
Vroom Inc is an online used car retailer headquartered in New York City. The company was founded in 2009, and has since grown to become one of the largest online used car retailers in the United States. Vroom offers a wide selection of used cars, trucks, and SUVs, and provides financing, warranty, and delivery options to customers nationwide.
Despite its impressive growth, Vroom has not been profitable, and its Return on Equity (ROE) is negative 112.63%. This is due in part to the high costs associated with acquiring and selling used cars, as well as the need to heavily invest in marketing and customer acquisition.
Vroom’s market cap is 147.78M as of 2022. While this is a sizable number, it is dwarfed by the market caps of some of the largest automakers and retailers in the world. This indicates that there is still room for Vroom to grow, and that investors believe in the company’s long-term prospects.
– Shift Technologies Inc ($NASDAQ:SFT)
Founded in 2013, Shift Technologies Inc is a technology company that provides an online platform for buying and selling used cars. The company has a market cap of $45.76M and a return on equity of 6532.78%. Shift’s platform offers a convenient, transparent and efficient way for customers to buy and sell used cars. The company operates in the United States and Canada.
– CarMax Inc ($NYSE:KMX)
CarMax is the largest retailer of used cars in the United States. The company was founded in 1993 and is headquartered in Richmond, Virginia. CarMax operates over 200 used car dealerships across the country. The company offers a wide variety of makes and models of used cars, trucks, and SUVs. CarMax also offers financing and extended warranties on its vehicles.
CarMax has a market cap of $9.59 billion as of 2022 and a return on equity of 16.04%. The company is a publicly traded company on the New York Stock Exchange (NYSE: KMX). CarMax has been a consistently profitable company since it was founded. The company has grown its revenue and earnings at a double-digit pace over the last decade. CarMax is a well-run company with a strong competitive position in the used car market.
Summary
CARVANA‘s second quarter of fiscal year 2023 saw total revenue decrease by 23.6% from the same period last year, reaching USD 2968.0 million. Despite this, net income improved to USD -58.0 million from -238.0 million in the prior year. On July 19, the day the earnings results were released, the stock price moved up.
Investors may be pleased with the improvement in net income, considering the decrease in revenue. Further analysis of the financials is warranted to make an informed decision on investing in CARVANA.
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