Carvana (CVNA) Q3 Earnings Lag Estimates

Core Insights - Carvana reported quarterly earnings of $1.03 per share, missing the Zacks Consensus Estimate of $1.33 per share, representing an earnings surprise of -22.56% [1] - The company posted revenues of $5.65 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.80%, compared to $3.66 billion in the same quarter last year [2] - Carvana shares have increased approximately 78.1% year-to-date, significantly outperforming the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.14 on revenues of $4.97 billion, and for the current fiscal year, it is $5.23 on revenues of $19.16 billion [7] - The estimate revisions trend for Carvana was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Carvana belongs, is currently ranked in the bottom 41% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]