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

Key Points

• Zacks Research raised its Q1 2027 earnings estimate for Carvana to $0.50 per share from $0.48 and kept a Strong-Buy rating on the stock.
• The firm also lifted longer-term forecasts for Carvana, including FY2027 EPS to $2.12 and FY2028 EPS to $3.35, signaling expectations for improving profitability.
• Carvana’s latest quarterly results beat expectations, with $1.69 EPS versus $0.32 expected and $6.43 billion in revenue versus $6.12 billion estimated, reinforcing recent optimism around the turnaround.

Carvana Co. (NYSE:CVNA - Free Report) - Stock analysts at Zacks Research increased their Q1 2027 earnings estimates for Carvana in a research note issued on Tuesday, June 9th. Zacks Research analyst Team now forecasts that the company will earn $0.50 per share for the quarter, up from their previous estimate of $0.48. Zacks Research currently has a "Strong-Buy" 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 $0.63 EPS, FY2027 earnings at $2.12 EPS, Q1 2028 earnings at $0.84 EPS and FY2028 earnings at $3.35 EPS.

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

Several other equities analysts also recently commented on the stock. Robert W. Baird set a $88.00 price target on shares of Carvana in a research note on Friday, May 15th. Bank of America upped their price target on shares of Carvana from $72.00 to $82.00 and gave the company a "neutral" rating in a research note on Tuesday, April 21st. Gordon Haskett upped their price target on shares of Carvana from $67.00 to $85.00 and gave the company a "hold" rating in a research note on Thursday, April 30th. Morgan Stanley increased their price objective on shares of Carvana from $90.00 to $102.00 and gave the stock an "overweight" rating in a research note on Thursday, April 30th. Finally, BNP Paribas Exane increased their price objective on shares of Carvana from $77.60 to $85.80 in a research note on Thursday, April 30th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $93.14.

Carvana Trading Up 0.3%

CVNA stock opened at $69.68 on Wednesday. The company has a debt-to-equity ratio of 1.05, a quick ratio of 2.57 and a current ratio of 4.09. The company's 50-day simple moving average is $70.84 and its 200 day simple moving average is $75.17. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38. The company has a market capitalization of $76.43 billion, a PE ratio of 42.39, a price-to-earnings-growth ratio of 11.72 and a beta of 3.45.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Ascentis Independent Advisors bought a new position in Carvana in the 1st quarter valued at approximately $26,000. Thurston Springer Miller Herd & Titak Inc. bought a new position in Carvana in the 4th quarter valued at approximately $29,000. Farmers & Merchants Investments Inc. bought a new position in Carvana in the 4th quarter valued at approximately $29,000. Annis Gardner Whiting Capital Advisors LLC raised its holdings in Carvana by 152.6% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 96 shares of the company's stock valued at $30,000 after buying an additional 58 shares during the last quarter. Finally, Motiv8 Investments LLC bought a new position in Carvana in the 4th quarter valued at approximately $33,000. Institutional investors own 56.71% of the company's stock.

Insider Activity at Carvana

In related news, VP Stephen R. Palmer sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $70.42, for a total value of $352,100.00. Following the completion of the transaction, the vice president owned 152,955 shares in the company, valued at $10,771,091.10. This trade represents a 3.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available 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 firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $61.97, for a total transaction of $3,098,600.00. Following the completion of the transaction, the chief operating officer owned 464,620 shares of the company's stock, valued at approximately $28,793,430.64. This trade represents a 9.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 386,287 shares of company stock worth $27,022,696 over the last three months. 15.19% of the stock is owned by insiders.

Trending Headlines about Carvana

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research upgraded Carvana to Strong-Buy, which can support investor confidence in the stock’s outlook. Zacks upgrade report
• Positive Sentiment: The firm raised earnings estimates for Q1 2027, FY2027, Q1 2028, and FY2028, signaling expectations for improving long-term profitability. Carvana stock page
• Positive Sentiment: Carvana recently beat quarterly expectations with $1.69 EPS versus $0.32 expected and revenue of $6.43 billion versus $6.12 billion estimated, reinforcing the turnaround narrative. Carvana earnings reference
• Neutral Sentiment: One insider, Thomas Taira, sold 5,597 shares under a pre-arranged trading plan; the sale is worth noting but does not necessarily indicate a change in the company’s fundamentals. Insider trading details
• Neutral Sentiment: Some broader commentary is focused on Carvana’s post-split accessibility and renewed visibility after its 5-for-1 stock split, which may help trading interest but is not a direct business catalyst. Stock split article
• Negative Sentiment: The same analyst update slightly trimmed Q3 2027 EPS to $0.63 from $0.64, a small caution that future quarters may not rise in a straight line. Carvana analyst estimates

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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