Carvana (NYSE:CVNA) Announces Quarterly Earnings Results

Carvana (NYSE:CVNA) issued its quarterly earnings data on Wednesday. The company reported $0.42 earnings per share for the quarter, beating the consensus estimate of $0.38 by $0.04, FiscalAI reports. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The business had revenue of $7.38 billion for the quarter, compared to analysts’ expectations of $6.90 billion.

Carvana Stock Performance

CVNA traded up $0.21 during trading on Wednesday, hitting $66.28. 17,861,357 shares of the company traded hands, compared to its average volume of 14,939,063. Carvana has a one year low of $54.46 and a one year high of $97.38. The stock’s fifty day moving average is $67.01 and its 200 day moving average is $71.21. The company has a quick ratio of 2.57, a current ratio of 4.09 and a debt-to-equity ratio of 1.05. The firm has a market cap of $72.70 billion, a P/E ratio of 40.32, a price-to-earnings-growth ratio of 14.37 and a beta of 3.46.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Argus cut their price target on shares of Carvana from $500.00 to $100.00 in a report on Monday, May 11th. UBS Group reiterated a “buy” rating and issued a $104.00 price objective (up from $97.00) on shares of Carvana in a research note on Thursday, April 30th. Bank of America boosted their target price on Carvana from $72.00 to $82.00 and gave the stock a “neutral” rating in a research note on Tuesday, April 21st. Citizens Jmp boosted their target price on Carvana from $92.00 to $103.00 and gave the stock a “market outperform” rating in a research note on Friday, May 1st. Finally, BTIG Research reaffirmed a “buy” rating and issued a $97.00 target price on shares of Carvana in a report on Friday, June 5th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $92.65.

Carvana News Summary

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter results, including $7.38 billion in revenue versus analyst expectations of $6.90 billion. Earnings were $0.42 per share, above the consensus estimate cited by MarketBeat and up from $0.26 a year earlier. Carvana second-quarter results press release
• Positive Sentiment: Management forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion in adjusted earnings during the second half. The outlook reinforces the company’s profitability and growth momentum. Carvana forecasts up to $3 billion in earnings
• Positive Sentiment: Carvana expanded same-day vehicle delivery to the Fort Myers area, supporting customer convenience and potentially helping sales and inventory acquisition in another market. Carvana expands same-day delivery to Fort Myers
• Neutral Sentiment: Zacks characterized quarterly earnings as matching its consensus estimate at $0.42 per share, highlighting that the headline earnings performance varied depending on the analyst benchmark used. Carvana matches Q2 earnings estimates
• Negative Sentiment: Shares fell sharply after reports that, despite record revenue, profits, and a 40% increase in auto sales, Carvana missed some Wall Street expectations. The reaction suggests investors were seeking an even stronger operational or forward outlook. Carvana auto sales jump 40 percent while shares slump
• Negative Sentiment: Valuation remains a risk: CVNA trades at elevated earnings and growth multiples, leaving the stock vulnerable to profit-taking when results or guidance do not decisively exceed expectations.

Insiders Place Their Bets

In other Carvana news, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $68.55, for a total value of $3,427,500.00. Following the transaction, the chief operating officer directly owned 458,755 shares in the company, valued at $31,447,655.25. The trade was a 9.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Ira J. Platt sold 15,000 shares of the business’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 transaction, the director owned 186,470 shares in the company, valued at approximately $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 396,962 shares of company stock valued at $28,525,088. Company insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

Institutional investors have recently bought and sold shares of the company. Quinn Opportunity Partners LLC purchased a new stake in Carvana in the fourth quarter worth $211,000. Equitable Holdings Inc. purchased a new position in shares of Carvana during the 3rd quarter valued at $205,000. FIL Ltd purchased a new position in shares of Carvana during the 4th quarter valued at $201,000. Brown Brothers Harriman & Co. grew its stake in shares of Carvana by 1,015.2% during the 4th quarter. Brown Brothers Harriman & Co. now owns 368 shares of the company’s stock worth $155,000 after acquiring an additional 335 shares during the period. Finally, AlphaCentric Advisors LLC bought a new position in shares of Carvana during the 4th quarter worth $116,000. Hedge funds and other institutional investors own 56.71% of the company’s stock.

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.