Carvana Analysts Slash Their Forecasts After Q4 Results

Core Insights - Carvana Co reported strong fourth-quarter sales, with revenue of $5.60 billion, surpassing analyst estimates of $5.26 billion [1] - The company achieved fourth-quarter earnings of $4.22 per share, although this figure may not align with estimates [1] Group 1: Company Performance - In 2025, Carvana experienced a 43% year-over-year growth, achieving record unit economics and providing significant value to customers through improved selection, faster delivery times, and reduced costs [2] - Carvana anticipates substantial growth in retail units sold and adjusted EBITDA in 2026, with expected sequential increases in both metrics during the first quarter [3] Group 2: Market Reaction and Analyst Opinions - Following the earnings announcement, Carvana shares declined by 9.8% to $326.24 in pre-market trading [3] - Analysts have adjusted their price targets for Carvana, with BTIG maintaining a Buy rating and lowering the target from $535 to $455, B of A Securities maintaining a Buy rating and reducing the target from $460 to $400, and Deutsche Bank maintaining a Buy rating while lowering the target from $600 to $519 [4]