Carvana Co. (NYSE:CVNA) shares were trading around 6% lower after-hours following the company’s Q1 results, with EPS coming in at ($2.89), worse than the consensus estimate of ($1.42). Revenue grew 56% year-over-year to $3.5 billion, compared to the consensus estimate of $3.39 billion.
According to Ernie Garcia, founder and CEO of Carvana, the company views the macro factors, such as Omicron, high used vehicle prices, and rapid changes in interest rates, as transitory and remains focused on delivering the best possible experiences to its customers.
The company expects to continue gaining significant market share in 2022 through continued growth in retail units and revenue, improve the efficiency of its logistics network, speeding delivery times, reducing rescheduling and cancellation rates, and enabling broader inventory selection through increased inventory visibility.
As a result, the company anticipates meaningful sequential improvement in Q2 in retail units sold, revenue, total GPU, SG&A per retail unit sold, and EBITDA margin.
In addition to earnings, Carvana announced it plans to offer $1 billion in Class A common stock.
Shares of Carvana are down 60% this year.
Davit Kirakosyan