Carvana reports Q3 EPS $1.03, consensus $1.32

Reports Q3 revenue $5.65B, consensus $5.10B. Reports Q3: Retail units sold totaled 155,941, an increase of 44%. Revenue totaled $5.647 billion, an increase of 55%. Total Gross profit was $1.148 billion, an increase of 42%. Net income margin was 4.7%, an increase from 4.0%. The company states: “This quarter we crossed over $20 billion annual revenue run rate for the first time, with revenue growth at 55%. Excitingly, we are achieving these results while we still have many areas of opportunity across the business. We still have fundamental gain opportunities in every revenue and cost line item with plans to systematically unlock them. We still have significant fixed cost leverage opportunities that we expect to achieve consistently over time as we grow. We are still investing in foundational capabilities that strengthen, differentiate, and further vertically integrate our business, deepening our competitive moats. We still have significant capacity for growth and positive feedback that we are investing in and unlocking now. We currently have inspection and reconditioning real estate capacity for our current goal of selling 3 million retail units annually and, by year end, we will have fully built out capacity for over 1.5 million retail units or 2.5x our current quarterly run rate. We are still adding inventory pools which reduces logistics costs and puts cars closer to more customers speeding up delivery times. We have now added production capabilities to 15 ADESA locations with plans to continue opening these centers at a similar pace over the next year.”