Carvana Co. reported a net loss of $47.2 million for the fourth quarter of 2017, widening from a year-earlier loss of $35.7 million, the used-vehicle retailer known for its vehicle vending machines said in a statement released after the close of markets Tuesday.
CEO Ernie Garcia, in a call with analysts, said the fourth quarter was great by “any reasonable measure,” while adding in the statement that 2017 was “another year of tremendous growth and progress for Carvana.”
Yet vehicle sales and revenue for both the fourth quarter and 2017, as well as the size of the net loss, were worse than analysts had expected.
“More importantly, the 2018 guidance was below expectations,” Wells Fargo analyst David Lim wrote in a report. “That said, we like the name for its long-term potential.”
Carvana shares fell 6.5 percent to close at $17.46 on Wednesday.
Cyber Monday woes
Carvana’s vehicle sales more than doubled in the fourth quarter, to 13,517 vehicles from 5,600 a year earlier, but that was below the company’s previous guidance to analysts of 13,600 to 15,000. The company blamed an underwhelming Cyber Monday. “That noise was completely self-inflicted,” Garcia said in the conference call. “That said, it was noise.”
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