Carvana earnings for the first quarter fell short of Wall Street estimates, but the company smashed revenue views as the stock fell Thursday morning.
XThe provider of an online auto-buying website, Carvana (CVNA) reported an adjusted loss of 69 cents per share on revenue of $755.2 million. Wall Street expected an adjusted loss of 47 cents on revenue of $702 million.
Carvana stock was down 3%, near 69.29, during morning trading on the stock market today.
Carvana operates an e-commerce platform for buying pre-owned vehicles but has yet to show a profit. The company held its initial public offering in June 2017, pricing shares at 15 and raising $225 million.
Carvana In Early Growth Stages
Baird equity analyst Colin Sebastian maintained a rating of outperform on Carvana stock and raised his price target to 85, from 65.
"Carvana is still in the early stages of a significant growth opportunity as one of the first pure-play online used car retailers," he wrote in a note to clients.
Carvana said it entered 24 new markets in the quarter for a total of 109, in addition to having 16 auto vending machines. Thus far in the second quarter it entered another 15 new markets.
It sold 36,766 vehicles in the first quarter, an increase of 99% from the year-ago period.
This year Carvana expects to sell 165,000 to 170,000 vehicles, up about 78%. It expects revenue in the range of $3.5 billion to $3.6 billion, up about 82%.
"Our continued investments in further improving our customers' experiences and driving our business' scalability are manifesting in sustained hyper growth, strong execution, and operating leverage and have us positioned for a very exciting 2019," the company said in a letter to shareholders.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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The post Carvana Earnings Miss Estimates, Revenue Tops Views As Stock Falls appeared first on Investor's Business Daily.
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