Zacks Research Has Optimistic Outlook of Carvana Q1 Earnings

Key Points

• Zacks Research has upgraded its Q1 2026 earnings estimate for Carvana to $1.66 per share, raising investor optimism, with a "Strong-Buy" rating currently in place for the stock.
• Carvana's last reported quarterly earnings exceeded expectations, with revenue growth of 41.9% year-over-year and a net margin of 3.46%.
• Major institutional investors have increased their positions in Carvana, leading to over 56% of the stock being owned by institutional investors.

Carvana Co. (NYSE:CVNA - Free Report) - Equities research analysts at Zacks Research raised their Q1 2026 EPS estimates for shares of Carvana in a research note issued to investors on Tuesday, October 7th. Zacks Research analyst Team now expects that the company will post earnings of $1.66 per share for the quarter, up from their previous estimate of $1.48. Zacks Research currently has a "Strong-Buy" rating on the stock. 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 $1.68 EPS, Q3 2026 earnings at $1.32 EPS, Q4 2026 earnings at $1.81 EPS, FY2026 earnings at $6.47 EPS, Q1 2027 earnings at $2.65 EPS, Q3 2027 earnings at $2.33 EPS and FY2027 earnings at $9.62 EPS.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $1.28 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.19. Carvana had a net margin of 3.46% and a return on equity of 40.57%. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.54 billion. During the same quarter in the previous year, the firm posted ($0.05) EPS. The business's revenue was up 41.9% compared to the same quarter last year.

Several other research analysts have also issued reports on the stock. William Blair reissued an "outperform" rating on shares of Carvana in a research report on Wednesday, July 23rd. Bank of America increased their price target on shares of Carvana from $375.00 to $425.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Piper Sandler increased their price target on shares of Carvana from $340.00 to $440.00 and gave the stock an "overweight" rating in a research report on Thursday, July 31st. Needham & Company LLC increased their price target on shares of Carvana from $340.00 to $500.00 and gave the stock a "buy" rating in a research report on Thursday, July 31st. Finally, Citigroup reaffirmed a "buy" rating on shares of Carvana in a research note on Thursday. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $404.94.

Carvana Stock Performance

NYSE:CVNA opened at $360.80 on Thursday. Carvana has a 52-week low of $148.25 and a 52-week high of $413.33. The company has a debt-to-equity ratio of 2.51, a quick ratio of 2.58 and a current ratio of 4.00. The company has a market cap of $77.64 billion, a price-to-earnings ratio of 90.43, a PEG ratio of 1.21 and a beta of 3.55. The firm's 50-day moving average is $366.54 and its 200-day moving average is $312.80.

Hedge Funds Weigh In On Carvana

A number of hedge funds and other institutional investors have recently bought and sold shares of CVNA. Wealth Enhancement Advisory Services LLC boosted its stake in Carvana by 16.1% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 2,513 shares of the company's stock valued at $511,000 after acquiring an additional 348 shares during the last quarter. Wedmont Private Capital acquired a new stake in Carvana in the first quarter worth $307,000. Farther Finance Advisors LLC raised its holdings in Carvana by 333.1% in the first quarter. Farther Finance Advisors LLC now owns 3,482 shares of the company's stock worth $740,000 after purchasing an additional 2,678 shares during the period. Yousif Capital Management LLC raised its holdings in Carvana by 4.1% in the first quarter. Yousif Capital Management LLC now owns 1,266 shares of the company's stock worth $265,000 after purchasing an additional 50 shares during the period. Finally, GAMMA Investing LLC raised its holdings in Carvana by 31.4% in the first quarter. GAMMA Investing LLC now owns 1,030 shares of the company's stock worth $215,000 after purchasing an additional 246 shares during the period. 56.71% of the stock is owned by institutional investors.

Insider Transactions at Carvana

In other Carvana news, major shareholder Ernest C. Garcia II sold 100,000 shares of the firm's stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $352.40, for a total value of $35,240,000.00. Following the transaction, the insider directly owned 35,892,792 shares of the company's stock, valued at approximately $12,648,619,900.80. This trade represents a 0.28% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Daniel J. Gill sold 80,000 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $398.91, for a total transaction of $31,912,800.00. Following the completion of the transaction, the insider directly owned 197,832 shares in the company, valued at approximately $78,917,163.12. The trade was a 28.79% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 2,099,966 shares of company stock worth $755,642,066. Corporate insiders own 17.12% of the company's stock.

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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