Vroom slides after disappointing revenue forecast

Vroom

01/03/2022 12:28

** Vroom Inc  VRM.O  shares down 14.8% premarket to $5.18,
near record low, after online used-car seller posted mixed Q4
results and current-qtr revenue guide missed expectations
    ** Co after the bell Mon said rev rose 130% yr/yr to $934.5
mln, topping consensus of $902 mln, per Refinitiv data
 urn:newsml:reuters.com:*:nBw9ZnYFWa
    ** Adj loss of 94 cents/sh higher than est of 77 cents/sh
loss
    ** VRM cited headwinds in qtr included lower sales margins
and higher reconditioning costs due to labor shortages and
elevated demand at third-party reconditioning partners
    ** For Q1, VRM expects revenue of $875 mln and online sales
of 18,000-19,000 vehicles. Avg analyst est called for Q1 revenue
of ~$1.04 bln, per Refinitiv
    ** 8 of 14 analysts rate VRM 'buy' or higher, 5 are neutral
and 1 recommends selling the stock; median PT is $13 - Refinitiv
    ** Through close on Mon, shares down ~44% in 2022 and have
lost ~86% over the past year
    ** Conversely, shares of larger peer Carvana  CVNA.N  surged
21% on Fri after co agreed to buy Kar Global's  KAR.N  vehicle
auction business in U.S. to boost its physical presence and
maintain growth as pandemic-induced boom fades  urn:newsml:reuters.com:*:nL4N2UZ6TC

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))