Carvana (CVNA) reported first-quarter results late Thursday that solidly beat analyst estimates. But Carvana stock dropped.
The company reported an adjusted loss of 46 cents a share on revenue of $2.24 billion. Analysts expected Carvana to report a loss of 68 cents on revenue of $1.96 billion, according to FactSet. Revenue soared 104% from the year-ago period.
Carvana stock fell 2.6%, near 256.50, during after-hours trading on the stock market today.
The company is a leader in an emerging group of innovators who have migrated the entire process of buying a used vehicle online. Consumers can shop, buy a car and have it delivered without ever leaving their home.
Carvana said it remains on track to meet or exceed the 2021 targets introduced in its fourth-quarter earnings report.
However, Carvana has yet to post a quarterly profit.
Garrett Nelson, equity analyst at CFRA Research, maintained his hold rating on Carvana but raised his price target on Carvana stock to 260, from 230.
“We think the better-than-expected results were partially boosted by consumer stimulus payments and low new vehicle inventories, which are driving increased sales of used vehicles,” Nelson wrote in a note to clients. However, he said, “Despite these tailwinds, CVNA still could not generate a profit.”
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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