Why Carvana Shares Are Plunging After Hours

Carvana Co CVNA shares are trading lower in Wednesday's after-hours session after the company reported financial results.

Carvana said first-quarter revenue increased 56% year-over-year to $3.5 billion, which beat the $3.39 billion estimate, according to data from Benzinga Pro. The company reported a quarterly net loss of $506 million.

Carvana said omicron, used vehicle prices, interest rates, and other macro factors all negatively impacted retail units sold, which was the main driver of the company's weak results. Retail units sold totaled 105,185.

"We view these macro factors as transitory and remain focused on delivering the best possible experiences to our customers," said Ernie Garcia, founder and CEO of Carvana.

Carvana refrained from providing any near-term guidance due to the aforementioned uncertainties surrounding current industry trends. The company will host a conference call to discuss these results beginning at 5:30 p.m. ET.

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Carvana also announced a $1 billion common stock public offering. The company's CEO indicated that he has an interest in purchasing up to an aggregate of $432 million of the company's stock in the offering. The stock reversed on the news but is still trading lower.

Additionally, Carvana plans to raise up to $1B from series A perpetual preferred stock and up to $2.275B of senior unsecured notes due 2030 pursuant to a separate offering memorandum for each proposed offering.

CVNA Price Action: Carvana shares are making new 52-week lows in Wednesday's after-hours session.

The stock was down 7.73% in after-hours at $85.35 at press time.

Photo: courtesy of Carvana.