By Christiana Sciaudone
Investing.com -- Vroom (NASDAQ:VRM) dropped 9% even with demand and revenue growing.
Unit sales prices dropped in the third quarter and aren't expected to recover for the rest of the year. Logistics costs also rose in the quarter.
For the fourth quarter, the average ecommerce selling price per unit is estimated to be between $24,500 to $25,500. In the third quarter, the average ecommerce selling price dropped to $24,248 from $31,370.
Ecommerce unit sales and revenue for the fourth quarter are expected to rise 25% from the third quarter, and 74% from a year earlier at the middle of the guidance range of 10,500 to 11,500.
Revenue for the fourth quarter is estimated at between $372 million and $414 million with a loss of between 41 cents and 35 cents per share.
Vroom's third quarter loss per share of 31 cents beat the expected 36-cent loss on sales of $340 million, versus the estimated $311 million.
Following the less-than-stellar outlook, Vroom got a handful of price target cuts from Baird to Wells Fargo (NYSE:WFC).
Baird analyst Colin Sebastian nonetheless maintained his outperform rating on Vroom.
"Looking further ahead, Vroom will insource more transportation and last mile deliveries, which should help improve service and ease bottlenecks," Sebastian said, according to StreetInsider. "Importantly, the long-term e-commerce opportunity remains intact, and Vroom's hybrid (asset-light) model should ultimately drive meaningful scale and online share."
Shares are down by about half since hitting a record in September. Vroom went public in June.