Carvana (US:CVNA) Benzinga·2025-07-31 16:11Core Viewpoint - Carvana Co reported positive second-quarter earnings, leading to a rally in its shares, which are approaching their 52-week high [1] Group 1: Financial Performance - Carvana reported revenues of $4.84 billion and EBITDA of $601 million, surpassing Street estimates of $4.58 billion and $553 million respectively [2] - The company sold 143,000 units, reflecting a 41% year-on-year growth, exceeding consensus by 1,600 units [2] - Management provided full-year EBITDA guidance of $2-$2.2 billion, aligning with expectations and indicating confidence in stable margins for the second half of the year [3] Group 2: Analyst Ratings and Price Targets - BofA Securities analyst Michael McGovern maintained a Buy rating and raised the price target from $375 to $425 [2] - Wedbush analyst Scott Devitt reiterated a Neutral rating while increasing the price target from $320 to $360, noting record-high quarterly adjusted EBITDA [4] - Needham analyst Chris Pierce reaffirmed a Buy rating and significantly raised the price target from $340 to $500, calling Carvana "the best large cap, profitable growth story in our coverage" [6] Group 3: Growth Expectations - Management anticipates a sequential increase in retail units sold, projecting at least 32% year-on-year growth, which is ahead of the consensus estimate of 30% [4] - The stock's rise reflects increased investor confidence in management's ability to drive sustainable growth and improve profitability [5] - Carvana aims to achieve three million in total annual retail sales with adjusted EBITDA margins of 13.5% within the next five to ten years [5]