Carvana (US:CVNA) ZACKS·2025-10-27 16:56Core Insights - Carvana Co. (CVNA) is expected to report third-quarter 2025 results on October 29, with earnings per share (EPS) estimated at $1.33 and revenues at $5.05 billion, indicating a year-over-year EPS growth of 107.8% [1][8] - The consensus estimate for quarterly revenues suggests a year-over-year growth of 38.2%, with Carvana having beaten earnings estimates in the last four quarters, averaging a surprise of 107.32% [2][8] Financial Performance - In Q2 2025, Carvana reported an adjusted EPS of $1.28, surpassing the Zacks Consensus Estimate of $1.10, and significantly up from 14 cents in the same quarter last year. Net sales reached $4.84 billion, exceeding the estimate of $4.59 billion, marking a 42% year-over-year increase [2][5] - The adjusted EBITDA for Q2 2025 was $601 million, reflecting a 70% increase year-over-year, with margins at 12.4%. The company forecasts full-year adjusted EBITDA between $2 billion and $2.2 billion, compared to $1.38 billion last year [5][8] Sales and Growth Projections - Carvana's retail unit sales are projected to grow, with an expected increase in Q3 2025 retail unit sales to 145,112 vehicles, indicating a 33.6% year-over-year growth [3][4] - The acquisition of ADESA's U.S. operations has enhanced Carvana's logistics, auction capabilities, and reconditioning infrastructure, contributing to improved profitability and operational efficiency [4][5] Earnings Expectations - Carvana has a positive Earnings ESP of +6.55%, indicating a strong likelihood of beating earnings estimates for the upcoming quarter, supported by a Zacks Rank of 2 (Buy) [6][7]