Carvana Co. (NYSE: CVNA) reported Q3 EPS of ($0.10), $0.23 better than the analyst estimate of ($0.33). Revenue for the quarter came in at $1.54 billion versus the consensus estimate of $1.53 billion.

Outlook:

• In light of the uncertainty surrounding COVID-19 and its economic repercussions we are not providing guidance at this time. Instead, we are providing directional color.
• Following our significant progress on production capacity, GPU, and EBITDA margin this quarter, we are positioning the business for strong growth in 2021.
• In the fourth quarter, we expect seasonal patterns across major line items to be similar to past years, with a few adjustments noted below.
• First, we have elected not to run our usual Cyber Monday promotion this year as we continue to focus on building inventory. As a result, we expect retail unit growth to face a headwind around the time of Cyber Monday and a tailwind as we continue building selection on the website. Over the course of the third quarter we significantly grew the number of vehicles available for immediate purchase, but ended the quarter at just half the level we had prior to the pandemic. During the fourth quarter we expect to make significant additional progress in growing our inventory.
• Second, we expect the market to transition to a more normalized depreciation environment in Q4 accentuating normal seasonal trends in wholesale GPU.
• Lastly, we expect Retail GPU to have a seasonal change that more closely resembles 2018, as Q4 2019 was impacted by early iterations in our customer-sourced bidding and pricing that offset a normal seasonal shape.
  

For earnings history and earnings-related data on Carvana Co. (CVNA) click here.