Carvana Q4 Earnings: Losses Widen to $806 Million Amid Sales Decline

Carvana Co. (CVNA) reported a fourth-quarter loss of $806 million, or $3.87 per share, compared to a loss of $6.3 million, or $0.03 per share, in the same period a year ago. The company’s revenue decreased by 8.8% to $1.7 billion from $1.9 billion in the same period last year.

The company’s shares were down by more than 8% in after-hours trading on Tuesday following the announcement of its quarterly earnings.

Revenue Decline

Carvana’s revenue declined by 8.8% to $1.7 billion in the fourth quarter, compared to $1.9 billion in the same period a year ago. The company attributed the decline to a decrease in the number of vehicles sold and a decrease in average selling price.

Losses Widen

Carvana’s losses widened to $806 million in the fourth quarter, compared to a loss of $6.3 million in the same period a year ago. The company attributed the widening losses to higher operating expenses, including higher depreciation and amortization expenses, and higher interest expenses.

Outlook

Carvana expects its revenue to increase in the first quarter of 2021, due to an increase in the number of vehicles sold and an increase in average selling price. The company also expects its losses to narrow in the first quarter, due to lower operating expenses.

In conclusion, Carvana reported a fourth-quarter loss of $806 million, or $3.87 per share, compared to a loss of $6.3 million, or $0.03 per share, in the same period a year ago. The company’s revenue decreased by 8.8% to $1.7 billion from $1.9 billion in the same period last year. Carvana expects its revenue to increase in the first quarter of 2021 and its losses to narrow. #Carvana #Q4Earnings #RevenueDecline #LossesWiden #Outlook