Carvana's Surprise Earnings

July 19, 2023

Today is Wednesday, July 19, 2023.

The Early Bird Index today is 58.77.

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Carvana's Surprise Earnings

Online used car retailer Carvana (NYSE: CVNA) announced a change to its earnings on Tuesday, causing the stock price to drop by 10.18% in after-hours trading.

Details: Carvana moved its earnings up to Wednesday morning, with a conference call and webcast at 8:00 a.m. ET. The company was originally scheduled to report earnings on August 3.

Powering the Story: The sudden decision to move its earnings date up shocked investors. Carvana gave no indication on Tuesday about why it is moving up its earnings to Wednesday morning.

Stock Price: Carvana is down 87% in the past two years, but the stock has been surging since May and is now up 759% in 2023 thanks to a slightly improved forecast.

Final Thoughts: Some view Carvana as just a meme stock. Hopefully, we get some more clarity about Carvana’s plans to turn the company around and improve its finances.

Notables

Notable Earnings Today: Netflix (Nasdaq: NFLX), Tesla (Nasdaq: TSLA), Carvana (NYSE: CVNA), Goldman Sachs (NYSE: GS), ASML (Nasdaq: ASML), Halliburton (NYSE: HAL), United Airlines (Nasdaq: UAL), U.S. Bancorp (NYSE: USB), International Business Machines (NYSE: IBM), Nasdaq (Nasdaq: NDAQ), Zions Bancorp (Nasdaq: ZION), Ally Financial (NYSE: ALLY), Las Vegas Sands (NYSE: LVS), Baker Hughes (Nasdaq: BKR), Alcoa (NYSE: AA), M&T Bank (NYSE: MTB), Steel Dynamics (Nasdaq: STLD), Elevance Health (NYSE: ELV), Discover Financial Services (NYSE: DFS), Citizens Financial Group (NYSE: CFG), Kinder Morgan (NYSE: KMI), Cohen & Steers (NYSE: CNS), Crown Castle (NYSE: CCI), Equifax (NYSE: EFX), First Horizon (NYSE: FHN), Rexford Industrial Realty (NYSE: REXR), SL Green Realty (NYSE: SLG).

Notable IPOs Today: Oddity Tech Ltd (Nasdaq: ODD), Series Portfolios Trust (NYSE Arca: CLOX), Touchstone ETF Trust (NYSE Arca: TSEC).

Notable Equity Crowdfunding Campaigns Ending Today: Orbital Assembly (Silicon Prairie), Colive (SMBX), Azure Printed Homes (Republic). 

Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

J.B. Hunt's Weak Freight Demand

Photo by Sander Yigin / Unsplash

Despite posting bad financial results, shares of J.B. Hunt Transport Services (Nasdaq: JBHT) jumped by 2.57% in after-hours trading on Tuesday.

Financials: J.B. Hunt reported earnings of $1.81 per share in the past quarter and revenue of $3.13 billion; both were lower than expected.

Details: Revenue dropped by 18% and overall operating income declined by 23%. The category of Integrated Capacity Solutions saw revenue decline by 43%. J.B. Hunt blamed “weaker overall freight activity.”

But: The operating income for Final Mile Services grew by 12% and the operating income for Dedicated Contract Services increased by 21%.

Stock Price: J.B. Hunt is up 9% this year, including an 8% increase in the last 30 days.

Final Thoughts: These results show that we could be in a freight recession, which is bad for transportation stocks.

Interactive Brokers' Disappointing Results

Interactive Brokers (Nasdaq: IBKR) dropped by 5.99% in after-hours trading after the company posted financial earnings results that fell short of expectations.

Final Thoughts: Daily average revenue trades for the company fell 14% in the quarter and commission revenue remains unchained. The stock is up 20% this year.

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