Carvana’s Q3 Disappoints
Used-car retailer misses expectations in face of industry pressures.

Carvana’s stock fell more than 7% in after-hours trading Thursday upon news of the third-quarter results.
IMAGE: Getty Images
Online used-car retailer Carvana missed Wall Street expectations for the third quarter, announcing that revenue, profit and sales fell year-over-year.
Carvana’s gross profit fell 31% from a year earlier to $359 million. Retail vehicle sales dropped 8%, and gross profit per unit fell more than $1,100 to $3,500.
“This economic environment remains uncertain, but we are focused squarely on the goal of driving the business to profitability,” said CEO Ernie Garcia in a press release. “While progress is rarely linear, we remain on the path to becoming the largest and most profitable auto retailer.”
Tempe, Ariz.-based Carvana said it had a net loss of $508 million in the quarter.
The company blamed elevated used-car prices and ongoing interest rate increases for tempering consumer demand, a phenomenon that continued Thursday when the Federal Reserve announced another interest rate hike to weaken inflation.
This time last year, the used-car market was buoyed by inflated new-car prices resulting from decreased inventories brought about by pandemic-related market pressures.
Carvana’s stock fell more than 7% in after-hours trading Thursday upon news of the third-quarter results.
Originally posted on Auto Dealer Today
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