CVNA Earnings Prediction
The chart below shows how CVNA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CVNA sees a -5.65% change in stock price 10 days leading up to the earnings, and a +15.36% change 10 days following the report. On the earnings day itself, the stock moves by +7.20%. This data can give you a slight idea of what to expect for the next quarter's release.
CVNA Key Earning Data
CVNA Earnings Analysis
Positive
Record Retail Units Sold: Retail units sold totaled 133,898 in Q1, an increase of 46% and a new company record.
Record Revenue Increase: Revenue was $4.232 billion, an increase of 38% and also a new company record.
Record Financial Performance: For the fifth consecutive quarter, we earned positive net income, and we set new records for retail units sold revenue, adjusted EBITDA, GAAP operating income and GAAP operating margin.
Record Adjusted EBITDA Growth: Adjusted EBITDA was $488 million in Q1, an increase of $253 million and a new company record.
EBITDA Margin Improvement: Adjusted EBITDA margin was 11.5% in Q1, a 3.8 percentage point increase, well within our long-term financial model EBITDA margin range of 8% to 13.5%.
EBITDA to Operating Income Conversion: We converted approximately 80% of adjusted EBITDA into $394 million of GAAP operating income and a 9.3% GAAP operating margin in Q1, leading the public auto retail industry.
Retail Unit Growth Impact: Our 46% growth in retail units sold led to a $750 reduction in non-GAAP SG&A expense per retail unit sold.
Record Retail Sales and EBITDA: We expect a sequential increase in both retail units sold and adjusted EBITDA in Q2, leading to all-time company records on both metrics.
Negative
Wholesale GPU Decline: Non-GAAP wholesale GPU decreased by $189, indicating challenges in wholesale vehicle pricing and depreciation rates.
SG&A Expense Concerns: Non-GAAP SG&A expense increased by 20%, which could raise concerns about rising operational costs despite growth in retail units sold.
Market Penetration Challenges: The company is still only capturing about 1% of the total used and new car market, suggesting limited market penetration and potential growth challenges ahead.
Growth Over Margin Prioritization: The CEO mentioned prioritizing growth over margin, which may lead to short-term profitability concerns as the company focuses on scaling operations.
Record EBITDA Margin Challenges: Despite achieving a record adjusted EBITDA margin of 11.5%, the company is still in a highly competitive and fragmented industry, which could impact future margins.
CVNA FAQs
How does CVNA typically perform around its earnings report dates?
CVNA's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -5.65% change leading up to the report and a +15.36% change in the 10 days following the release.
Is Carvana Co (CVNA) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
CVNA Earning Call Sentiment
Carvana Co. (CVNA) Q1 2025 Earnings Call Transcript
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