Zacks Research Issues Positive Estimate for Carvana Earnings

Key Points

• Zacks Research raised Carvana’s Q1 2027 EPS estimate to $0.50 from $0.47 and projects full-year 2027 EPS of $2.25, while maintaining a “Hold” rating.
• Analyst sentiment remains broadly positive, with 16 Buy, one Strong Buy, and seven Hold ratings; the consensus price target is $84.14.
• Carvana’s latest quarter exceeded expectations, reporting $0.42 EPS versus the $0.39 consensus and $7.38 billion in revenue, up 52.4% year over year.

Carvana Co. (NYSE:CVNA - Free Report) - Stock analysts at Zacks Research raised their Q1 2027 EPS estimates for shares of Carvana in a report issued on Tuesday, August 11th. Zacks Research analyst Team now forecasts that the company will earn $0.50 per share for the quarter, up from their previous estimate of $0.47. Zacks Research currently has a "Hold" rating on the stock. The consensus estimate for Carvana's current full-year earnings is $1.67 per share. Zacks Research also issued estimates for Carvana's Q2 2027 earnings at $0.59 EPS, Q3 2027 earnings at $0.68 EPS, Q4 2027 earnings at $0.47 EPS, FY2027 earnings at $2.25 EPS and Q2 2028 earnings at $0.81 EPS.

Other research analysts also recently issued research reports about the company. Robert W. Baird set a $72.00 price target on Carvana in a report on Thursday, July 30th. Wells Fargo & Company set a $80.00 price objective on Carvana and gave the stock an "overweight" rating in a research report on Thursday, July 30th. Jefferies Financial Group decreased their price objective on Carvana from $95.00 to $90.00 and set a "buy" rating for the company in a research report on Tuesday, July 14th. Royal Bank Of Canada set a $82.00 target price on Carvana and gave the company an "outperform" rating in a research note on Thursday, July 30th. Finally, UBS Group reiterated a "buy" rating and issued a $83.00 target price on shares of Carvana in a report on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $84.14.

Carvana Price Performance

CVNA opened at $73.75 on Friday. The firm has a market capitalization of $81.16 billion, a P/E ratio of 40.79, a PEG ratio of 2.64 and a beta of 3.46. The stock has a fifty day moving average of $67.05 and a 200-day moving average of $69.32. The company has a quick ratio of 2.33, a current ratio of 3.93 and a debt-to-equity ratio of 0.94. Carvana has a 12-month low of $54.46 and a 12-month high of $97.38.

Carvana (NYSE:CVNA - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.39 by $0.03. Carvana had a net margin of 6.26% and a return on equity of 37.06%. The firm had revenue of $7.38 billion during the quarter, compared to analyst estimates of $6.90 billion. During the same quarter last year, the business posted $1.51 EPS. The company's revenue was up 52.4% on a year-over-year basis.

Institutional Trading of Carvana

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD grew its stake in shares of Carvana by 8.6% in the fourth 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 last quarter. Vanguard Group Inc. raised its position 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 valued at $7,082,804,000 after buying an additional 3,328,115 shares during the last quarter. State Street Corp lifted its stake in shares of Carvana by 93.7% in the fourth quarter. State Street Corp now owns 5,714,779 shares of the company's stock valued at $2,411,751,000 after buying an additional 2,764,759 shares during the period. Capital Research Global Investors grew its position in 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 buying an additional 1,711,144 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Carvana by 55.4% in the 4th quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company's stock valued at $1,632,763,000 after acquiring an additional 1,382,852 shares in the last quarter. Institutional investors and hedge funds own 56.71% of the company's stock.

Insider Activity at Carvana

In other news, Director J Danforth Quayle sold 14,525 shares of the business's stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total value of $1,016,750.00. Following the completion of the sale, the director directly owned 214,960 shares in the company, valued at approximately $15,047,200. The trade was a 6.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Mark W. Jenkins sold 63,750 shares of the company's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $68.34, for a total transaction of $4,356,675.00. Following the sale, the chief financial officer directly owned 1,029,580 shares of the company's stock, valued at approximately $70,361,497.20. This represents a 5.83% 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. Over the last 90 days, insiders have sold 391,372 shares of company stock valued at $26,555,789. 15.19% of the stock is owned by company insiders.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks Research raised multiple earnings estimates. Forecasts increased for Q3 2026 EPS to $0.48 from $0.39 and FY2026 EPS to $1.63 from $1.51. Estimates for FY2027 also rose to $2.25 from $1.99, with increases across Q1-Q4 2027 and Q2 2028. The revisions suggest analysts see stronger future profitability, although Zacks retained a “Hold” rating. Zacks Research estimates for Carvana
• Positive Sentiment: Debt refinancing should reduce interest costs and extend maturities. Carvana priced a $1.66 billion senior secured term loan, which it plans to use to redeem its 9% senior secured notes due 2030. The transaction is expected to lower annual cash interest expense by approximately $45 million over the next four years, improving cash flow and balance-sheet flexibility. Carvana’s reported net debt was approximately 1.0 times trailing-12-month adjusted EBITDA. Carvana refinancing article
• Neutral Sentiment: Analyst valuation remains supportive but more cautious. One updated fair-value estimate fell from about $89.83 to $82.83. That target remains above the stock’s indicated price, but the reduction reflects tighter valuation expectations and continued execution risk. Carvana fair value estimate article
• Negative Sentiment: Some longer-term estimates were trimmed. Zacks reduced Q1 2028 EPS to $0.68 from $0.77 and FY2028 EPS slightly to $3.24 from $3.25. These cuts are modest but temper the otherwise stronger near- and medium-term earnings outlook.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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