Used vehicle marketplace dealer CarLotz, Inc. (NASDAQ: LOTZ) has reported stronger-than-expected results for the fourth quarter ended December 31, 2021.
Following the upbeat results, shares of the company rose 3.4% to close at $1.82 in Tuesday’s extended trade.
Revenue & Earnings
CarLotz reported quarterly revenues of $83.1 million, up 124% from the same quarter last year. Further, the figure surpassed the consensus estimate of $72.95 million. A year-over-year rise of 102.4% and 373.5% witnessed in retail vehicle sales and wholesale vehicle sales, respectively, drove the overall strong growth in net revenues.
The company’s loss per share for the quarter widened to $0.12 from $0.07 a year ago. The figure came in narrower than the consensus loss estimate of $0.15 per share.
CarLotz’s retail gross profit per unit more than halved from the previous year to $758.
Further, operating loss for the quarter widened from $3.9 million in the previous year to $27.8 million in the current year.
CEO Transition
Meanwhile, CarLotz has announced the appointment of Lev Peker to the role of Chief Executive Officer, effective April 18. Peker will succeed CarLotz’s Co-Founder and CEO Michael Bor, whose last day of employment is March 16.
Management Commentary
The Chairman of CarLotz, Luis Solorzano, said, “During 2021, we made significant investments in several areas of our business, including strategic and brand marketing, technology, and the team in an effort to execute our growth plan. Even though we have faced many unexpected sourcing challenges throughout the year, due principally to the semiconductor chip shortage, COVID-related supply chain issues, and the resulting rapidly increasing wholesale pricing, we remain excited to provide our unique consignment business model to sellers and buyers across the country.”
Stock Rating
The stock has a Hold consensus rating based on 1 Hold. On March 15, Barrington analyst Gary Prestopino reiterated a Hold rating on the stock with a price target of $6 (240.9% upside potential). Shares of the company have declined 79.2% over the past year.
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