Vroom (NASDAQ:VRM) stock is taking a beating on Thursday after the online seller of used cars reported results for the fourth quarter of 2020.
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The negative news for VRM stock starts with adjusted losses per share of 44 cents. That misses Wall Street’s adjusted per-share loss estimate of 39 cents for the quarter. It’s also a wider loss than the 33 cents per share reported during the same time last year.
Moving on to revenue, Vroom reported $405.83 million for the fourth quarter of the year. Luckily, that’s has it beating out analysts’ estimate of $401.2 million. It’s also a nice boost over the $355.59 million reported in Q4 2019.
Paul Hennessy, CEO of Vroom, said the following in the earnings report.
“Vroom had a strong fourth quarter, with significant year-over-year growth in our ecommerce business. Inventory and marketing are scaling as planned, which is increasing the velocity of the Vroom flywheel, driving conversion and increased sales and revenues.”
Just like its Q4 earnings, Vroom’s outlook for the first quarter of 2021 is a mixed bag. The company is expecting losses per share between 61 cents and 68 cents on revenue ranging from $500 to $529 million. Wall Street’s estimates call for losses per share of 39 cents on revenue of $509.93 million. Investors in VRM stock aren’t happy with this outlook based on today’s stock movement.
VRM stock was down 24.4% as of Thursday morning and are down 16.9% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
The post VRM Stock: Why Online Auto Retailer Vroom Is Crashing Today appeared first on InvestorPlace.
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