Zacks Research Comments on Carvana’s Q1 Earnings (NYSE:CVNA)

Carvana Co. (NYSE:CVNA) – Investment analysts at Zacks Research upped their Q1 2027 earnings per share (EPS) estimates for Carvana in a research note issued to investors on Tuesday, August 11th. Zacks Research analyst Team now forecasts that the company will post earnings per share of $0.50 for the quarter, up from their prior 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.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, July 29th. The company reported $0.42 EPS for the quarter, beating 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 for the quarter, compared to analyst estimates of $6.90 billion. The company’s revenue for the quarter was up 52.4% compared to the same quarter last year. During the same period in the previous year, the business earned $1.51 earnings per share.

Other equities analysts have also issued reports about the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $80.00 target price on shares of Carvana in a research report on Friday, July 31st. BNP Paribas Exane lowered their price target on Carvana from $86.00 to $69.00 and set a “hold” rating for the company in a research note on Thursday, July 30th. Barclays lowered their price target on Carvana from $94.00 to $93.00 and set an “overweight” rating for the company in a report on Friday, July 31st. BTIG Research dropped their price target on Carvana from $97.00 to $87.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Finally, Stephens lifted their price objective on Carvana from $86.00 to $97.00 in a report on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $84.14.

Carvana Price Performance

Carvana stock opened at $73.75 on Friday. Carvana has a 52 week low of $54.46 and a 52 week high of $97.38. The firm has a market cap of $81.16 billion, a P/E ratio of 40.79, a P/E/G ratio of 2.64 and a beta of 3.46. The company has a debt-to-equity ratio of 0.94, a quick ratio of 2.33 and a current ratio of 3.93. The business’s fifty day moving average is $67.05 and its two-hundred day moving average is $69.32.

Institutional Investors Weigh In On Carvana

Institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in shares of Carvana by 40.8% in the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock valued at $6,243,000 after buying an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after buying an additional 181 shares during the last quarter. Cerity Partners LLC raised its position in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company’s stock worth $1,847,000 after acquiring an additional 1,226 shares in the last quarter. AXA S.A. raised its position in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company’s stock worth $1,433,000 after acquiring an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC raised its position in Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company’s stock worth $3,334,000 after acquiring an additional 825 shares in the last quarter. Institutional investors own 56.71% of the company’s stock.

Insider Activity at Carvana

In related news, Director Ira J. Platt sold 15,000 shares of Carvana stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $67.83, for a total value of $1,017,450.00. Following the sale, the director owned 186,470 shares of the company’s stock, valued at approximately $12,648,260.10. The trade was a 7.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director J Danforth Quayle sold 14,525 shares of the company’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $70.00, for a total value of $1,016,750.00. Following the sale, the director owned 214,960 shares in the company, valued at $15,047,200. The trade was a 6.33% decrease in their position. 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 sold 391,372 shares of company stock worth $26,555,789. Corporate insiders own 15.19% of the company’s stock.

More Carvana News

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.