Earnings Preview: Carvana
Carvana (NYSE:CVNA) is preparing to release its quarterly earnings on Wednesday, 2025-07-30. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Carvana to report an earnings per share (EPS) of $1.12.
The announcement from Carvana is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Historical Earnings Performance
The company's EPS beat by $0.76 in the last quarter, leading to a 10.17% increase in the share price on the following day.
Here's a look at Carvana's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.75 | 0.32 | 0.25 | -0.08 |
| EPS Actual | 1.51 | 0.56 | 0.64 | 0.14 |
| Price Change % | 10.0% | -12.0% | 19.0% | 10.0% |
Tracking Carvana's Stock Performance
Shares of Carvana were trading at $336.33 as of July 28. Over the last 52-week period, shares are up 146.63%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on Carvana
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Carvana.
Carvana has received a total of 22 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $338.59, the consensus suggests a potential 0.67% upside.
Comparing Ratings with Competitors
The following analysis focuses on the analyst ratings and average 1-year price targets of Penske Automotive Group, CarMax and Murphy USA, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Penske Automotive Group, with an average 1-year price target of $167.0, suggesting a potential 50.35% downside.
- Analysts currently favor an Outperform trajectory for CarMax, with an average 1-year price target of $82.9, suggesting a potential 75.35% downside.
- Analysts currently favor an Outperform trajectory for Murphy USA, with an average 1-year price target of $493.33, suggesting a potential 46.68% upside.
Insights: Peer Analysis
The peer analysis summary presents essential metrics for Penske Automotive Group, CarMax and Murphy USA, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Carvana | Outperform | 38.26% | $929M | 15.63% |
| Penske Automotive Group | Buy | 2.10% | $1.27B | 4.61% |
| CarMax | Outperform | 6.09% | $893.62M | 3.36% |
| Murphy USA | Outperform | -6.57% | $483.60M | 6.82% |
Key Takeaway:
Carvana ranks highest in Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity.
All You Need to Know About Carvana
Carvana Co is an e-commerce platform for buying and selling used cars. The company derives revenue from used vehicle sales, wholesale vehicle sales and other sales and revenues. The other sales and revenues include sales of loans originated and sold in securitization transactions or to financing partners, commissions received on VSCs and sales of GAP waiver coverage. The foundation of the business is retail vehicle unit sales. This drives the majority of the revenue and allows the company to capture additional revenue streams associated with financing, VSCs, auto insurance and GAP waiver coverage, as well as trade-in vehicles.
Financial Milestones: Carvana's Journey
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Carvana displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 38.26%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Carvana's net margin is impressive, surpassing industry averages. With a net margin of 5.1%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Carvana's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 15.63% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Carvana's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.49%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 4.02, Carvana adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Carvana visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
