Carvana Co., the online used-car retailer, reported a much wider loss than Wall Street had expected for the fourth quarter.
(Bloomberg) — Carvana Co., the online used-car retailer, reported a much wider loss than Wall Street had expected for the fourth quarter.
The company said Thursday that it lost $7.61 a share in the period as used-car prices were falling, while the average analyst estimate called for a loss of $2.19 per share. Sales also missed analyst projections.
The losses cap a tumultuous year for Carvana, which was punctuated by a sagging stock price and growing debt. Some of the company’s largest creditors have already banded together in an effort to secure more favorable terms ahead of a potential restructuring.
The retailer has been cutting costs to to try to offset slumping sales, but it’s struggled to buy cars due to its liquidity problems.
Shares of Carvana fell 5% in extended trading at 4:20 p.m. in New York.
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