Carvana Co's (NYSE:CVNA) stock tumbled after hours, wiping out $6 billion in market value, as investors reacted to falling profit margins and weaker-than-expected wholesale sales.
The used-car retailer beat forecasts, posting $359 million in adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) for the fourth quarter—well above analyst expectations of $330 million and a significant jump from $60 million a year ago.
Revenue also exceeded forecasts, hitting $3.5 billion versus an expected $3.3 billion.
Despite the strong headline numbers, profit per vehicle slipped. Retail gross profit per unit dropped $270 to $3,226, while wholesale profit per car fell to $674, below analyst forecasts and down sharply from $930 in the previous quarter. Wholesale volumes also missed expectations.
Carvana stock was down 15.2% in Thursday morning trading.