Carvana (NYSE:CVNA) Announces Earnings Results

Key Points

• Carvana beat quarterly expectations, reporting $0.42 in earnings per share versus the $0.38 consensus and $7.38 billion in revenue versus $6.90 billion expected.
• Management forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in adjusted earnings during the second half of the year.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and a $92.65 price target, although the stock’s elevated valuation and recent insider selling remain potential risks.

Carvana (NYSE:CVNA - Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.42 earnings per share for the quarter, topping analysts' consensus estimates of $0.38 by $0.04, FiscalAI reports. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The firm had revenue of $7.38 billion during the quarter, compared to the consensus estimate of $6.90 billion.

Carvana Stock Up 0.3%

Shares of NYSE CVNA traded up $0.21 during trading on Wednesday, hitting $66.28. 17,861,357 shares of the company traded hands, compared to its average volume of 14,939,063. The firm has a market capitalization of $72.70 billion, a price-to-earnings ratio of 40.32, a P/E/G ratio of 14.37 and a beta of 3.46. The business's fifty day moving average is $67.01 and its 200 day moving average is $71.21. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38.

Analysts Set New Price Targets

CVNA has been the topic of a number of recent analyst reports. BTIG Research reissued a "buy" rating and issued a $97.00 price objective on shares of Carvana in a research note on Friday, June 5th. Citigroup reiterated an "outperform" rating on shares of Carvana in a report on Friday, May 1st. Robert W. Baird set a $88.00 price target on Carvana in a research note on Friday, May 15th. DA Davidson boosted their price target on Carvana from $64.00 to $67.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Finally, Gordon Haskett increased their price target on Carvana from $67.00 to $85.00 and gave the stock a "hold" rating in a report on Thursday, April 30th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have issued a Hold rating to the company's stock. According to data from MarketBeat, Carvana has a consensus rating of "Moderate Buy" and a consensus price target of $92.65.

Insider Buying and Selling

In other Carvana news, VP Stephen R. Palmer sold 5,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.53, for a total value of $342,650.00. Following the transaction, the vice president owned 144,934 shares in the company, valued at approximately $9,932,327.02. This represents a 3.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $68.55, for a total value of $3,427,500.00. Following the completion of the transaction, the chief operating officer owned 458,755 shares in the company, valued at approximately $31,447,655.25. The trade was a 9.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 396,962 shares of company stock worth $28,525,088 over the last 90 days. 15.19% of the stock is owned by company insiders.

Hedge Funds Weigh In On Carvana

Institutional investors have recently modified their holdings of the company. Quinn Opportunity Partners LLC acquired a new position in shares of Carvana during the fourth quarter valued at about $211,000. Equitable Holdings Inc. bought a new position in Carvana in the 3rd quarter valued at about $205,000. FIL Ltd bought a new position in Carvana in the 4th quarter valued at about $201,000. Brown Brothers Harriman & Co. increased its holdings in Carvana by 1,015.2% during the 4th quarter. Brown Brothers Harriman & Co. now owns 368 shares of the company's stock worth $155,000 after purchasing an additional 335 shares in the last quarter. Finally, AlphaCentric Advisors LLC bought a new stake in Carvana during the 4th quarter worth approximately $116,000. 56.71% of the stock is owned by institutional investors and hedge funds.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter results, including $7.38 billion in revenue versus analyst expectations of $6.90 billion. Earnings were $0.42 per share, above the consensus estimate cited by MarketBeat and up from $0.26 a year earlier. Carvana second-quarter results press release
• Positive Sentiment: Management forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in adjusted earnings during the second half. The outlook reinforces the company’s profitability and growth momentum. Carvana forecasts up to $3 billion in earnings
• Positive Sentiment: Carvana expanded same-day vehicle delivery to the Fort Myers area, supporting customer convenience and potentially helping sales and inventory acquisition in another market. Carvana expands same-day delivery to Fort Myers
• Neutral Sentiment: Zacks characterized quarterly earnings as matching its consensus estimate at $0.42 per share, highlighting that the headline earnings performance varied depending on the analyst benchmark used. Carvana matches Q2 earnings estimates
• Negative Sentiment: Shares fell sharply after reports that, despite record revenue, profits, and a 40% increase in auto sales, Carvana missed some Wall Street expectations. The reaction suggests investors were seeking an even stronger operational or forward outlook. Carvana auto sales jump 40 percent while shares slump
• Negative Sentiment: Valuation remains a risk: CVNA trades at elevated earnings and growth multiples, leaving the stock vulnerable to profit-taking when results or guidance do not decisively exceed expectations.

Carvana Company Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana's model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.

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