Carvana (NYSE:CVNA) Posts Earnings Results, Beats Estimates By $0.04 EPS

Carvana (NYSE:CVNA) released its quarterly earnings results on Wednesday. The company reported $0.42 earnings per share for the quarter, topping analysts’ consensus estimates 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 company had revenue of $7.38 billion during the quarter, compared to analysts’ expectations of $6.90 billion.

Carvana Trading Up 0.3%

CVNA traded up $0.21 during midday trading on Wednesday, hitting $66.28. The company’s stock had a trading volume of 17,861,357 shares, compared to its average volume of 14,939,063. Carvana has a 52-week low of $54.46 and a 52-week high of $97.38. The firm has a 50-day moving average price of $67.03 and a two-hundred day moving average price of $71.05. The company has a current ratio of 4.09, a quick ratio of 2.57 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 PEG ratio of 14.37 and a beta of 3.46.

Insider Buying and Selling at Carvana

In related news, CFO Mark W. Jenkins sold 63,750 shares of the firm’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $77.44, for a total value of $4,936,672.50. Following the sale, the chief financial officer directly owned 1,050,635 shares of the company’s stock, valued at approximately $81,359,073.13. This trade represents a 5.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Benjamin E. Huston sold 50,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $76.99, for a total transaction of $3,849,600.00. Following the completion of the sale, the chief operating officer owned 529,810 shares of the company’s stock, valued at approximately $40,791,131.52. The trade was a 8.62% 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 sold 396,962 shares of company stock worth $28,525,088. 15.19% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Invesco Ltd. increased its stake in Carvana by 36.8% during the fourth quarter. Invesco Ltd. now owns 1,977,138 shares of the company’s stock worth $834,392,000 after acquiring an additional 532,120 shares during the last quarter. Corient Private Wealth LLC grew its holdings in shares of Carvana by 1,849.5% during the 4th quarter. Corient Private Wealth LLC now owns 157,893 shares of the company’s stock worth $66,634,000 after purchasing an additional 149,794 shares during the period. Mercer Global Advisors Inc. ADV grew its holdings in shares of Carvana by 14.1% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 4,990 shares of the company’s stock worth $2,106,000 after purchasing an additional 617 shares during the period. Virtue Capital Management LLC increased its position in Carvana by 99.1% during the 4th quarter. Virtue Capital Management LLC now owns 3,635 shares of the company’s stock worth $1,455,000 after purchasing an additional 1,809 shares in the last quarter. Finally, Vident Advisory LLC raised its holdings in Carvana by 6.4% in the fourth quarter. Vident Advisory LLC now owns 5,982 shares of the company’s stock valued at $2,525,000 after buying an additional 359 shares during the period. 56.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

CVNA has been the subject of a number of recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $107.40 price objective on shares of Carvana in a research report on Thursday, April 30th. Needham & Company LLC reaffirmed a “buy” rating and set a $120.00 price target on shares of Carvana in a research note on Friday, June 5th. Citigroup reiterated an “outperform” rating on shares of Carvana in a report on Friday, May 1st. Stephens boosted their price objective on shares of Carvana from $86.00 to $97.00 in a research report on Thursday, April 30th. Finally, Jefferies Financial Group reduced their price objective on shares of Carvana from $95.00 to $90.00 and set a “buy” rating on the stock in a research note on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target 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.

Carvana Company Profile

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.