CARVANA (CVNA)
EARNINGS RELEASE - AUGUST 5 (AMC)
EARNINGS EXPECTATIONS:
THIS QTR: EPS: -.83/share REV: 1,140/M
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LAST QTR: EPS: -.66/share ACTUAL: -1.18/share (MISS)
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NEXT QTR: EPS: -.69/share REV: 1,410/M
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FULL YR: EPS: -3.34/share REV: 5,180/M
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BEAT/MISS RECORD: XX% OF THE TIME THEY BEAT ESTIMATES
PRIOR ‘JUMP ZONE’ MOVES (LAST 3 QTRS %) 10.9, -20.14, -10.59
EXPECTED JUMP MOVE THIS QUARTER: 15%
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*** With market volatility at extremes there is greater risk in trading these events which may not react as they would under normal market conditions. Please take extra caution before tradin
Links To Latest News and Headlines
Carvana is primary partner for 7-time NASCAR Cup Series Champion Jimmie Johnson and Chip Ganassi Racing for 2021 INDYCAR SERIES racing season
New and used automotive sales have been transformed by several companies offering online and mobile options. A new entry will hit the public market with a SPAC merger.The Deal: Carlotz announced it's going public via SPAC Acamar Partners Acquisition Corp (NASDAQ: ACAM). The deal values Carlotz with an enterprise value of $827 million.Acamar Partners Acquisition Corp shareholders will own 27% of the company after the merger.Shares will trade as LOTZ on the Nasdaq after the deal is completed.Former General Motors (NYSE: GM) CEO Rick Wagoner is part of the investors on the PIPE.About Carlotz: Founded to transform the used vehicle industry, Carlotz offers the ability to buy, sell, trade automotive online or in-person. Carlotz is also the only company to offer a consignment to the retail sales business model in the industry.Carlotz operates with eight hubs, covering all 50 states and has sold over 25,000 vehicles through its platform. Related Link: Carvana, Vroom Rally On Goldman Sachs Upgrade: The Bull Case For Auto E-CommerceThe Market: Over 42 million used cars are sold each year, with 12 million passing through a wholesale auction process. The total addressable market is worth $841 billion.The used vehicle market is highly fragmented with peer to peer sales making up the largest percentage with 50%. The top 100 dealers make up only 6% of the market with other dealer groups accounting for 44%.Carlotz has around 0.02% market share of the used vehicle sales market.E-commerce sales in the automotive market is at 1% and has trailed the growth seen in other sectors. This comes despite 97% of vehicle purchases involving online research.The growth of e-commerce for automotive has seen companies like Carvana Co (NYSE: CVNA), Vroom Inc (NASDAQ: VRM), CarMax Inc (NYSE: KMX) and Shift (NASDAQ: SFT) go public.Financials: Carlotz estimates it will report $110 million in revenue for fiscal 2020. The company expects revenue to increase to $356 million and $945 million for fiscal 2021 and 2022, respectively.The company expects to sell more than 80,000 vehicles in fiscal 2023.Carlotz plans on opening additional hubs to cover more territory in the United States. The company believes it can hit a 0.15% market share in five years.Comparison to Peers: Carlotz lists Carvana, Vroom and Shift as its main competitors. An expected compound annual growth rate of 145% from 2020 to 2023 for Carlotz is the highest of the four companies that have a mean of 66%. Carlotz ranks first with the lowest customer acquisition per unit and has the highest margin per unit sold.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Sports Betting Launching Soon In 3 States, On The November Ballot In 3 More * FDA Approves Gilead's Remdesivir For Treatment Of Hospitalized COVID-19 Patients(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Carvana. (CVNA) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
On CNBC's “Mad Money” Wednesday evening, Jim Cramer interviewed Lithia Motors, Inc. (NYSE: LAD) CEO Bryan Deboer about the company's competitive strategy approach against Carvana Co. (NYSE: CVNA).Deboer says the company plans on competing with Carvana by first launching its Driveway.com strategy, which is an e-commerce solution. Drivway.com lets customers purchase or sell vehicles online and schedule at-home services.See Also: Carvana, Vroom Rally On Goldman Sachs Upgrade: The Bull Case For Auto E-CommerceThere are 20,000 cars on online now and the company also has a seven-day, no questions asked return policy, according to Deboer. He expects the first quarter of the year to have an additional 20,000-30,000 vehicles online and will be able to be the first to offer a seven-day, no questions asked return policy on new cars.Lastly, Deborn notes the company made approximately a quarter billion dollars in net profit in the third quarter from dealership acquisitions, which sets up the company well to purchase more in the future.See more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Why These Social Media Stocks Are Trading Higher Today * Jim Cramer Likes These Stocks If Joe Biden Wins The Election(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
In this article we will take a look at whether hedge funds think Carvana Co. (NYSE:CVNA) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from […]
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ANALYSIS:
StockJumpers trajectory analysis has a mixed market response post release. This is a VERY overpriced stock and is due for correction, and the data suggests it will but may not be until the following day. We are biased short on this event and will sell at market close, even if there is another small bump post release we will hold the position into tomorrow. (We are looking for it to drop over the next few days,)
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OUR TRADE PLAN:
ENTRY: SELL
STOP LOSS: N/A
INITIAL PROFIT TARGET: 15%
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TRADE ASSIST: N/A
POST RELEASE ACTION:
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There is a significant amount of data behind the scenes involved in the analysis and trade plan tab above, that does not get put into the report. Too much information for traders often confuses things – so this is stripped down to only what is needed to make the best possible decision(s) on trading the trajectory.
Members who are too busy to manual trade can use Trade Assist. For more information visit here
Avg Daily Volume: 2,051,943 Market Cap: 23.16B
Sector: None Short Interest: 40.73
Ticker delayed 20 minutes
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by Team Stockjumpers