Core Viewpoint - Carvana is expected to report its fourth-quarter 2024 results, with earnings estimated at 24 cents per share and revenues at $3.33 billion, reflecting a year-over-year revenue increase of 37.2% [1][2]. Financial Performance - The earnings estimate for Q4 2024 has decreased by one cent over the past month, while the company had a loss of $1 per share in the same quarter last year [2]. - For 2025, the revenue estimate is $16.24 billion, indicating a 20.8% year-over-year increase, and the EPS estimate is $2.85, suggesting a significant increase of 123% [4]. Sales and Growth - Carvana's used vehicle retail units sold have shown growth for the first time since June 2022, with over 100,000 cars sold in the second and third quarters of 2024, making it the second-largest used car retailer in the U.S. [6]. - The company anticipates a 47% year-over-year increase in retail units sold for Q4 2024, projecting sales of 112,021 vehicles [6]. Operational Efficiency - Adjusted EBITDA for Q4 2024 is forecasted to increase by 493% year-over-year to $356 million, driven by improved operational efficiency and cost-cutting measures [7]. - The company has successfully reduced SG&A expenses through staffing adjustments, advertising cuts, and inventory management, which are expected to enhance adjusted EBITDA margins [7]. Market Position and Valuation - Year-to-date, Carvana's shares have risen by 40%, outperforming competitors like CarMax and the broader auto industry as well as the S&P 500 [8]. - The stock is currently trading at a forward 12-month sales multiple of 3.55, which is higher than both the industry average and its own five-year median [11]. Strategic Initiatives - Carvana's shift from aggressive growth to operational efficiency has been pivotal, focusing on achieving positive adjusted EBITDA and increasing EBITDA per unit [13]. - A significant deal with Ally Financial to sell up to $4 billion in auto loan receivables has helped alleviate concerns regarding the company's financial stability [14]. Market Share and Expansion Potential - Despite being the second-largest used car retailer in the U.S., Carvana holds only a 1% share of the fragmented automotive retail market, indicating substantial growth potential as online car buying becomes more popular [15].

Core Insights - Carvana (CVNA) is expected to report quarterly earnings of $0.24 per share, reflecting a 124% increase year-over-year, with revenues projected at $3.33 billion, a 37.4% increase compared to the previous year [1] Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 5.2%, indicating analysts' reassessment of their forecasts [2] - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3] Revenue Projections - Analysts project 'Sales and operating revenues - Retail vehicle sales, net' to reach $2.39 billion, a year-over-year increase of 34.4% [5] - 'Sales and operating revenues - Other sales and revenues' is expected to be $283 million, indicating a significant year-over-year change of 91.2% [5] - 'Sales and operating revenues - Wholesale sales and revenues' is estimated at $682.54 million, reflecting a 36.8% increase year-over-year [6] Unit Sales and Profitability - Retail vehicle unit sales are projected to reach 109,418, compared to 76,090 in the same quarter last year [6] - Per retail unit gross profit is expected to be $6,585.14, up from $5,283 in the same quarter last year [7] - Per retail unit gross profit for retail vehicles is forecasted at $3,201.36, compared to $2,812 a year ago [7] - Per retail unit gross profit for wholesale is estimated at $730.99, up from $526 [7] Additional Metrics - Per retail unit gross profit for other sales is projected at $2,448.53, compared to $1,945 last year [8] - Unit sales for wholesale vehicles are expected to reach 54,625, up from 34,096 [8] - Per unit selling prices for retail vehicles are estimated at $22,269.06, down from $23,354 last year [8] - Per unit selling prices for wholesale vehicles are projected at $9,455.25, compared to $8,623 in the same quarter last year [9] - The consensus estimate for 'Markets at end of period' stands at 316, unchanged from the previous year [9] Stock Performance - Over the past month, Carvana shares have returned +25.2%, significantly outperforming the Zacks S&P 500 composite's +3.9% change [10] - Carvana currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near future [10]

The market expects Carvana (CVNA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

Carvana's (CVNA 1.42%) stock chart resembles a roller coaster. But despite the ridiculous amounts of volatility, the shares have been a huge winner, soaring 187% in the past five years.The business has been getting on better financial footing in recent times, gaining investors' confidence once again. If you missed the ride, you're probably wondering what type of returns are possible.With that being said, where will Carvana stock be in five years?Higher volumeCarvana made a name for itself by completely rede ...

Which of these e-commerce platforms has a brighter future?When Carvana (CVNA 0.34%) went public in 2017, the bulls claimed it could become the "Amazon (AMZN -4.05%) of used cars." It streamlined the car buying process with its online marketplace that delivered cars straight to the customer's door.But Carvana went through some wild swings after its market debut. It went public at $15, closed at a record high of $370.10 on Aug. 10, 2021, then plummeted to its all-time low of $3.72 on Dec. 27, 2022. At the tim ...

Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Carvana (CVNA) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Carvana is one of 212 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #2 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different se ...

Carvana (CVNA 1.68%) has taken its shareholders on a bumpy ride. Shares of the online vehicle retailer surged 33-fold from its initial public offering in April 2017 to its all-time high in August 2021. Monster growth boosted market sentiment.However, those gains slowed dramatically due to macro headwinds, which exposed Carvana's precarious financial position. To its credit, the business has improved its situation dramatically in recent years, and the shares have skyrocketed 5,120% in the past 25 months. Wit ...

When everything seems to be going right for a company, the stock's valuation can soar to levels that are tough to justify. This doesn't mean that the stock is set to plunge, but it does introduce quite a bit of risk for investors. Any bad news, or even "not good enough" news, can trigger a brutal selloff.Netflix (NFLX -0.74%) and Carvana (CVNA -1.09%) have won over investors, but both stocks are extremely expensive. If you're considering buying either one, tread carefully.The streaming kingNetflix is enteri ...

The latest trading session saw Carvana (CVNA) ending at $232.32, denoting a +0.79% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.88%. Elsewhere, the Dow saw an upswing of 1.24%, while the tech-heavy Nasdaq appreciated by 0.65%.Prior to today's trading, shares of the company had gained 3.54% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.92% and the S&P 500's gain of 1.17% in that time.Market participants will be closel ...

Carvana Co. Is Being Investigated For Securities Law Violations And Affected Investors Are Urged To Contact The Schall Law Firm ...