Why Is Carvana (CVNA) Up 17.1% Since Last Earnings Report?

Core Viewpoint - Carvana's recent earnings report shows mixed results, with earnings per share lagging estimates but revenues exceeding expectations, leading to a positive stock performance of approximately 17.1% over the past month [1][2]. Financial Performance - Carvana reported Q3 earnings of $1.03 per share, below the Zacks Consensus Estimate of $1.33, but an increase from $0.64 in the same quarter last year [2]. - Total revenues reached $5.65 billion, surpassing estimates by 11.6% and reflecting a year-over-year growth of 55% [2]. - Gross profit was $1.15 billion, up 42% year over year, with gross profit per unit (GPU) at $7,362, slightly down from $7,427 in the previous year [3]. Segmental Performance - Retail vehicle sales totaled $3.99 billion, a 57.1% increase year over year, with 155,941 vehicles sold, up 43.5% from the prior year [4]. - Wholesale vehicle sales reached $1.18 billion, up 49.7% year over year, with 80,369 vehicles sold, exceeding estimates [5]. - Other sales and revenues increased by 45.4% year over year to $474 million, with GPU at $3,040, which was below expectations [6]. Financial Position - As of September 30, 2025, Carvana had cash and cash equivalents of $2.14 billion, an increase from $1.72 billion at the end of 2024, while long-term debt decreased to $4.81 billion from $5.26 billion [7]. Outlook - For Q4 2025, Carvana anticipates over 150,000 retail unit sales and maintains its full-year adjusted EBITDA guidance in the range of $2 billion to $2.2 billion [8]. - Estimates for Carvana have trended upward recently, although the consensus estimate has shifted downwards by 5.89% [9][11]. Industry Comparison - Carvana operates within the Zacks Internet - Commerce industry, where competitor Wayfair reported revenues of $3.12 billion, reflecting an 8.1% year-over-year increase [12].