The end of July brings a torrent of second-quarter earnings results. Up to bat this week are wholesale auctions provider KAR Global and online used-vehicle retailing giant Carvana Co.
I began reporting on these two major players in February. Much has transpired at both companies in the last six months.
A refresher: First came KAR's February announcement that it had agreed to sell its ADESA U.S. physical auction business to Carvana. And Carvana finalized that blockbuster purchase of the ADESA operation in May. KAR CEO Peter Kelly said his company would pivot from physical assets after the sale and instead go all-in on its digital and hybrid auction offerings. Carvana reported a rocky first quarter. Its stock price tumbled. Financial analysts warned that the company needed to cut its costs.
All in all, it's been quite the eventful stretch.
Automotive News and I are now gearing up to bring readers news of KAR and Carvana's second-quarter results, which will be released today and Thursday, respectively, after the market closes.
I'll be monitoring whether KAR reports lost market share in the wholesale space since its divestment of ADESA U.S. I'll also keep an eye open for any update the company provides on its plan to focus on its digital and hybrid auction platforms.
With Carvana, there's quite a bit to watch: How many used cars and trucks did it end up selling in the quarter? Will it report another net loss? Did it reduce its cash spend? What progress has it made on getting the ADESA U.S. sites it bought ready to recondition a larger number of vehicles?
We'll continue to keep readers up to date on these two behemoths' operational moves and financial health through the second half of the year, too.
Readers, what do you want to know about these two companies? Do you think Carvana and other used-vehicle sellers will suffer in the third and fourth quarters if rising interest rates and fluctuating consumer confidence cause demand to cool down? Send me an email with your questions or insight.
