Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Used-car retailer Carvana sees significant core earnings for 2023

Stock MarketsMay 13, 2022 07:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Vehicles are displayed at a Carvana dealership, which allows customers to buy a used car online and have it delivered or pick it up from an automated-tower, in Austin, Texas, U.S., March 9, 2017. Picture taken March 9, 2017. REUTERS/Brian Snyd

(Reuters) - Carvana Co (NYSE:CVNA) on Friday forecast significant core earnings for 2023, as the online used-car retailer spelled out plans to rein in spending on advertising, expansion and other areas to offset waning demand.

Shares of the company, known for its car vending machines, were up 12.9% after the bell.

The outlook comes days after Carvana said it would lay off about 2,500 employees, or 12% of its workforce, as part of its efforts to return to profitability following poor quarterly performance.

Demand for used cars has waned on the back of sky-high prices and supply shortages, with Carvana saying it did not see the typical seasonal demand during the first quarter this year.

Carvana, which recorded about $220 million in capital expenditure for the first quarter, plans on slashing its budget every quarter until it reaches about $50 million in the fourth. It plans on maintaining that figure each quarter, so it could post "significant" positive EBITDA for 2023.

The company also said it would rapidly reduce its selling, general and administrative expense per car sold and maintain a balance between its sales volumes and staffing levels.

Carvana raised $1.25 billion in an equity offering last month, with its shares losing more than half their value since.

Used-car retailer Carvana sees significant core earnings for 2023
 

Related Articles

Global automakers face electric shock in China
Global automakers face electric shock in China By Reuters - May 25, 2022

By Norihiko Shirouzu BEIJING (Reuters) - If global automakers think they can extend their dominance in China into the electric era, they may be in for a shock. Kings of the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Valon Alili
Valon Alili May 14, 2022 4:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They hire over paid, uneducated, non wanting to work employees and horrible line leads with no experience
Valon Alili
Valon Alili May 14, 2022 4:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They hire over paid, uneducated, non wanting to work employees and horrible line leads with no experience
Valon Alili
Valon Alili May 14, 2022 4:52PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They hire over paid, uneducated, non wanting to work employees and horrible line leads with no experience
Franc Fil
Franc Fil May 14, 2022 3:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Car vending machines Lol! it's going to $0.00.
Alan Rice
Alan Rice May 14, 2022 3:16AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hi Franc.There is no place for your kind of common sense in this forum !!But have a nice weekend :)
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email