Research Analysts Set Expectations for Carvana Q2 Earnings

Key Points

• Zacks Research lowered its Q2 2027 earnings estimate for Carvana to $0.54 per share from $0.57, while keeping a Hold rating on the stock.
• Carvana’s last quarterly report was much stronger than expected, with EPS of $1.69 versus a $0.32 consensus estimate and revenue of $6.43 billion beating forecasts.
• Wall Street sentiment remains broadly positive overall, with a Moderate Buy consensus and an average price target of $92.92, even as some analysts have been mixed on the name.

Carvana Co. (NYSE:CVNA - Free Report) - Zacks Research decreased their Q2 2027 earnings estimates for shares of Carvana in a report issued on Thursday, July 16th. Zacks Research analyst Team now forecasts that the company will earn $0.54 per share for the quarter, down from their prior estimate of $0.57. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Carvana's current full-year earnings is $1.58 per share. Zacks Research also issued estimates for Carvana's Q3 2027 earnings at $0.61 EPS.

Carvana (NYSE:CVNA - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $1.37. The business had revenue of $6.43 billion during the quarter, compared to analysts' expectations of $6.12 billion. Carvana had a net margin of 6.40% and a return on equity of 41.46%.

CVNA has been the subject of several other reports. BNP Paribas Exane upped their price objective on Carvana from $77.60 to $85.80 in a research report on Thursday, April 30th. JPMorgan Chase & Co. boosted their target price on Carvana from $91.00 to $93.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Weiss Ratings reiterated a "hold (c+)" rating on shares of Carvana in a research note on Thursday, June 18th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $107.40 price objective on shares of Carvana in a report on Thursday, April 30th. Finally, DA Davidson boosted their price objective on shares of Carvana from $64.00 to $67.00 and gave the stock a "neutral" rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $92.92.

Carvana Stock Down 0.1%

Carvana stock opened at $70.54 on Friday. The stock has a market cap of $77.37 billion, a PE ratio of 42.91, a P/E/G ratio of 11.89 and a beta of 3.46. The company has a debt-to-equity ratio of 1.05, a current ratio of 4.09 and a quick ratio of 2.57. The stock's fifty day moving average is $68.06 and its two-hundred day moving average is $72.43. Carvana has a 1-year low of $54.46 and a 1-year high of $97.38.

Hedge Funds Weigh In On Carvana

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Price T Rowe Associates Inc. MD lifted its position in Carvana by 8.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company's stock worth $7,481,081,000 after acquiring an additional 1,407,762 shares during the period. Vanguard Group Inc. raised its stake in shares of Carvana by 24.7% during the fourth quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company's stock worth $7,082,804,000 after purchasing an additional 3,328,115 shares during the last quarter. State Street Corp lifted its holdings in shares of Carvana by 93.7% during the fourth quarter. State Street Corp now owns 5,714,779 shares of the company's stock worth $2,411,751,000 after purchasing an additional 2,764,759 shares during the period. Capital Research Global Investors lifted its holdings in shares of Carvana by 42.9% during the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company's stock worth $2,405,959,000 after purchasing an additional 1,711,144 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Carvana by 55.4% during the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock worth $1,632,763,000 after purchasing an additional 1,382,852 shares during the period. Hedge funds and other institutional investors own 56.71% of the company's stock.

Insider Activity

In other Carvana news, insider Thomas Taira sold 5,597 shares of Carvana stock in a transaction on Monday, June 8th. The shares were sold at an average price of $67.15, for a total value of $375,838.55. Following the transaction, the insider directly owned 315,075 shares in the company, valued at approximately $21,157,286.25. The trade was a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $67.83, for a total transaction of $1,017,450.00. Following the completion of the sale, the director directly owned 186,470 shares of the company's stock, valued at $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 396,962 shares of company stock worth $28,525,088 over the last ninety days. 15.19% of the stock is owned by corporate insiders.

About Carvana

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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