What is Zacks Research's Forecast for Carvana Q1 Earnings?

Key Points

• Zacks Research lowered Carvana's Q1 2026 EPS estimate from $1.58 to $1.42, with the current full-year earnings consensus at $2.85 per share.
• Carvana recently reported quarterly earnings of $1.51 EPS, significantly exceeding estimates of $0.75, with revenues of $4.23 billion compared to a consensus of $3.94 billion.
• Insider trading showed major shareholder Ernest C. Garcia II sold 50,000 shares valued at approximately $17.15 million recently, alongside CEO Ernest C. Garcia III selling 10,000 shares for about $3.38 million.

Carvana Co. (NYSE:CVNA - Free Report) - Stock analysts at Zacks Research reduced their Q1 2026 EPS estimates for shares of Carvana in a research note issued on Tuesday, July 22nd. Zacks Research analyst R. Department now expects that the company will earn $1.42 per share for the quarter, down from their previous forecast of $1.58. The consensus estimate for Carvana's current full-year earnings is $2.85 per share. Zacks Research also issued estimates for Carvana's Q2 2026 earnings at $1.19 EPS, Q3 2026 earnings at $1.32 EPS, Q4 2026 earnings at $1.61 EPS, FY2026 earnings at $5.55 EPS, Q1 2027 earnings at $2.40 EPS, Q2 2027 earnings at $2.17 EPS and FY2027 earnings at $8.46 EPS.

Carvana (NYSE:CVNA - Get Free Report) last issued its quarterly earnings results on Wednesday, May 7th. The company reported $1.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.75 by $0.76. The business had revenue of $4.23 billion for the quarter, compared to the consensus estimate of $3.94 billion. Carvana had a net margin of 2.68% and a return on equity of 44.86%. The firm's quarterly revenue was up 38.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.23 EPS.

Several other analysts have also recently weighed in on the company. Stephens boosted their price objective on Carvana from $300.00 to $375.00 and gave the stock an "overweight" rating in a report on Monday, July 7th. William Blair reissued an "outperform" rating on shares of Carvana in a report on Wednesday. Bank of America boosted their price objective on Carvana from $325.00 to $375.00 and gave the stock a "buy" rating in a report on Tuesday, June 10th. Robert W. Baird boosted their price objective on Carvana from $200.00 to $275.00 and gave the stock a "neutral" rating in a report on Thursday, May 8th. Finally, JMP Securities set a $440.00 price objective on Carvana and gave the stock a "market outperform" rating in a report on Wednesday, July 2nd. Seven investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $310.83.

Carvana Stock Performance

Shares of NYSE:CVNA opened at $326.46 on Friday. The stock has a market capitalization of $69.91 billion, a P/E ratio of 114.55, a P/E/G ratio of 1.33 and a beta of 3.59. Carvana has a 1-year low of $118.50 and a 1-year high of $364.00. The company has a current ratio of 3.81, a quick ratio of 2.70 and a debt-to-equity ratio of 2.97. The business has a 50-day moving average price of $327.76 and a two-hundred day moving average price of $261.07.

Insider Buying and Selling

In related news, major shareholder Ernest C. Garcia II sold 50,000 shares of the stock in a transaction that occurred on Monday, July 21st. The stock was sold at an average price of $342.96, for a total transaction of $17,148,000.00. Following the completion of the sale, the insider directly owned 35,642,792 shares of the company's stock, valued at approximately $12,224,051,944.32. This represents a 0.14% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Ernest C. Garcia III sold 10,000 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $337.51, for a total value of $3,375,100.00. Following the sale, the chief executive officer directly owned 621,440 shares of the company's stock, valued at approximately $209,742,214.40. The trade was a 1.58% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,121,515 shares of company stock valued at $702,869,548. 17.12% of the stock is owned by company insiders.

Hedge Funds Weigh In On Carvana

Hedge funds have recently made changes to their positions in the business. Hilltop National Bank bought a new position in shares of Carvana during the 2nd quarter worth approximately $25,000. Brooklyn Investment Group grew its stake in shares of Carvana by 961.5% during the 1st quarter. Brooklyn Investment Group now owns 138 shares of the company's stock worth $29,000 after acquiring an additional 125 shares in the last quarter. N.E.W. Advisory Services LLC bought a new position in shares of Carvana during the 1st quarter worth approximately $33,000. SJS Investment Consulting Inc. grew its stake in shares of Carvana by 960.0% during the 2nd quarter. SJS Investment Consulting Inc. now owns 106 shares of the company's stock worth $36,000 after acquiring an additional 96 shares in the last quarter. Finally, Transce3nd LLC bought a new position in shares of Carvana during the 4th quarter worth approximately $48,000. 56.71% of the stock is owned by institutional investors.

About Carvana

Carvana Co, together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices.

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