Zacks Research Issues Negative Outlook for Carvana Earnings

Key Points

• Zacks Research lowered its earnings outlook: It cut Carvana’s FY2026 EPS estimate to $1.47 from $1.63, below the $1.59 consensus, and also reduced its FY2027 and FY2028 forecasts.
• Analyst sentiment remains generally positive despite the estimate cuts: Carvana has a “Moderate Buy” consensus rating and an average price target of $82.09, with 17 analysts rating it Buy or Strong Buy and eight rating it Hold.
• In its latest quarter, Carvana reported EPS of $0.39, missing the $0.44 estimate, while revenue of $8.04 billion beat expectations and rose 42.4% year over year.

Carvana Co. (NYSE:CVNA - Free Report) - Research analysts at Zacks Research cut their FY2026 EPS estimates for Carvana in a note issued to investors on Thursday, November 12th. Zacks Research analyst Team now forecasts that the company will post earnings of $1.47 per share for the year, down from their prior forecast of $1.63. The consensus estimate for Carvana's current full-year earnings is $1.59 per share. Zacks Research also issued estimates for Carvana's Q4 2026 earnings at $0.32 EPS, Q2 2027 earnings at $0.60 EPS, Q3 2027 earnings at $0.69 EPS, FY2027 earnings at $2.04 EPS, Q1 2028 earnings at $0.83 EPS, Q2 2028 earnings at $0.73 EPS, Q3 2028 earnings at $0.91 EPS and FY2028 earnings at $2.94 EPS.

Several other research analysts also recently weighed in on the company. BNP Paribas Exane cut their price target on Carvana from $69.00 to $67.00 and set a "neutral" rating for the company in a report on Thursday, October 29th. Oppenheimer set a $90.00 price objective on Carvana and gave the stock an "outperform" rating in a report on Wednesday, September 30th. Citizens Jmp lifted their price objective on Carvana from $83.00 to $85.00 and gave the company a "market outperform" rating in a research report on Friday, October 30th. Jefferies Financial Group reiterated a "buy" rating on shares of Carvana in a research note on Thursday, October 29th. Finally, Morgan Stanley reiterated an "overweight" rating on shares of Carvana in a research report on Thursday, October 29th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $82.09.

Carvana Stock Down 4.1%

CVNA stock opened at $70.86 on Friday. The stock has a market capitalization of $78.18 billion, a P/E ratio of 37.08, a PEG ratio of 2.51 and a beta of 3.66. The company has a debt-to-equity ratio of 0.86, a quick ratio of 2.43 and a current ratio of 4.05. Carvana has a one year low of $54.46 and a one year high of $97.38. The company has a 50 day moving average price of $65.81 and a two-hundred day moving average price of $68.58.

Carvana (NYSE:CVNA - Get Free Report) last announced its quarterly earnings data on Wednesday, October 28th. The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.44 by ($0.05). Carvana had a net margin of 6.21% and a return on equity of 34.77%. The firm had revenue of $8.04 billion for the quarter, compared to analysts' expectations of $7.71 billion. During the same period in the previous year, the company posted $1.03 EPS. The business's quarterly revenue was up 42.4% on a year-over-year basis.

Insider Activity at Carvana

In other news, Director J Quayle sold 27,655 shares of the business's stock in a transaction on Tuesday, November 10th. The shares were sold at an average price of $72.97, for a total transaction of $2,017,985.35. Following the completion of the sale, the director directly owned 187,305 shares of the company's stock, valued at $13,667,645.85. The trade was a 12.87% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Mark W. Jenkins sold 63,750 shares of the business's stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $71.78, for a total transaction of $4,575,975.00. Following the sale, the chief financial officer directly owned 1,135,486 shares of the company's stock, valued at $81,505,185.08. This represents a 5.32% decrease in their ownership of the stock. 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 have sold a total of 639,686 shares of company stock valued at $45,182,047 over the last 90 days. 15.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Saudi Central Bank grew its holdings in shares of Carvana by 806.1% during the 2nd quarter. Saudi Central Bank now owns 45,043 shares of the company's stock worth $2,965,000 after purchasing an additional 40,072 shares during the period. WINTON GROUP Ltd purchased a new position in Carvana in the second quarter valued at approximately $23,046,000. Fund 1 Investments LLC purchased a new position in Carvana in the second quarter valued at approximately $3,126,000. Parkwood LLC lifted its position in Carvana by 3,147.7% during the second quarter. Parkwood LLC now owns 139,000 shares of the company's stock valued at $9,149,000 after buying an additional 134,720 shares in the last quarter. Finally, Swiss National Bank lifted its position in Carvana by 9.9% during the first quarter. Swiss National Bank now owns 395,180 shares of the company's stock valued at $124,237,000 after buying an additional 35,720 shares in the last quarter. 56.71% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Carvana

Here are a few of the latest stories about CVNA:

• Positive Sentiment: Zacks Research raised select quarterly EPS estimates: Q2 2027 to $0.60 from $0.59, Q3 2027 to $0.69 from $0.68, Q1 2028 to $0.83 from $0.68, and Q3 2028 to $0.91 from $0.85. These increases suggest some improvement in its outlook for specific periods. Carvana research
• Neutral Sentiment: Zacks’ estimate changes were mixed overall: it lowered forecasts for several other quarters even as it raised the estimates above. Carvana research
• Negative Sentiment: Zacks cut its full-year EPS forecasts for 2026 to $1.47 from $1.63, 2027 to $2.04 from $2.25, and 2028 to $2.94 from $3.24. It also lowered Q4 2026 EPS to $0.32 from $0.38 and Q2 2028 to $0.73 from $0.81. The broad annual downgrades may raise concerns about Carvana’s earnings trajectory. Carvana research

Carvana Company Profile

Carvana Co. operates an online platform for buying and selling used cars. Customers can browse vehicle listings, arrange financing, value a trade-in, and complete much of the purchase process online. The company also offers vehicle delivery or pickup, including at some locations with its distinctive car vending machines. Founded in 2012, Carvana has expanded its operations across the United States. Its services and vehicle availability vary by market, and the company supports its online marketplace with inspection, reconditioning, and logistics operations.

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