When Carvana Co. (NYSE: CVNA) reported its most recent quarterly results after the markets closed on Wednesday, the company posted a net loss of $0.37 per share and $475.3 million in revenue. The consensus estimates had called for a net loss of $0.34 per share and $424.1 million in revenue for the second quarter. The same period of last year reportedly had a per-share net loss of $0.28 and revenue of $209.37 million.
During the most recent quarter, retail units sold totaled 22,570, an increase of 111% from the second quarter of last year.
This quarter the company achieved record total gross profit per unit (GPU) of $2,173, providing a clear line of sight to the $3,000 midterm goal and the path to profitability. In fact, the GPU gains in the quarter, along with further operating leverage in the business, drove net loss margins to 10.8% from 18.6% in the same period last year.
Looking ahead to the third quarter, Carvana expects to see revenues in the range of $480 million to $520 million with retail unit sales of 23,000 to 25,000. The consensus estimates call for a net loss of $0.30 per share and $478.97 million in revenue for the quarter.
Ernie Garcia, Carvana co-founder and CEO, commented:
Second quarter results exceeded our prior guidance. We delivered triple-digit growth in retail units sold, revenue, and gross profit dollars, and drove a record total GPU of $2,173. We achieved these results while opening 9 new markets and 4 new car vending machines, and Carvana’s network now covers half of the U.S. population. We had a strong first half of the year and are on track for our fifth consecutive year of triple-digit revenue growth in 2018. We are well-positioned to benefit from continued momentum as consumers demand a new way to buy a car.
Shares of Carvana were last seen up about 17% at $55.12 on Thursday, with a consensus analyst price target of $39.45 and a 52-week trading range of $12.17 to $55.99.