Vroom stock falls 10% after Q3 results, guidance

Shares of Vroom Inc. fell more than 10% in the extended session Wednesday after the online used-car seller reported third-quarter results that beat Wall Street expectations but said it expects wider losses in the fourth quarter. Vroom said it lost $37.9 million, or 31 cents a share, in the third quarter, compared with a loss of $39.7 million, or $12.24 a share, in the year-ago period. Adjusted for one-time items, Vroom lost 29 cents a share. Sales fell 5.1% to $323 million, the company said. Analysts polled by FactSet expected Vroom to report a GAAP and adjusted loss of 37 cents on sales of $311 million. “After the initial disruption in our ecommerce operations due to the COVID-19 pandemic, consumer demand for used vehicles has returned to pre-COVID-19 levels and, in the three months ended September 30, 2020, we experienced continued strong consumer demand for our ecommerce solutions and contact-free delivery,” Vroom said in a statement. For the fourth quarter, Vroom said it expects sales between $372 million to $414 million and a per-share loss between 41 cents and 35 cents. The analysts surveyed by FactSet expect a fourth-quarter loss of 36 cents a share on sales of $399 million. Vroom went public in June, hoping to catch a tailwind from its contactless car-buying options. Vroom shares ended the regular session up 6.6%.

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