Zacks Research Issues Negative Estimate for Carvana Earnings

Carvana Co. (NYSE:CVNA) – Analysts at Zacks Research dropped their Q1 2026 earnings per share estimates for Carvana in a report released on Wednesday, March 4th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $1.26 for the quarter, down from their prior estimate of $1.96. The consensus estimate for Carvana’s current full-year earnings is $2.85 per share. Zacks Research also issued estimates for Carvana’s Q3 2026 earnings at $1.58 EPS, Q4 2026 earnings at $1.58 EPS, FY2026 earnings at $6.23 EPS, Q1 2027 earnings at $2.01 EPS, Q2 2027 earnings at $2.55 EPS and FY2027 earnings at $9.43 EPS.

Carvana (NYSE:CVNA) last announced its earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.10 by $3.12. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The company had revenue of $5.60 billion during the quarter, compared to analysts’ expectations of $5.24 billion. During the same quarter in the previous year, the business posted $0.56 earnings per share. Carvana’s quarterly revenue was up 58.0% on a year-over-year basis.

Several other brokerages have also recently commented on CVNA. Wedbush lowered their target price on shares of Carvana from $500.00 to $425.00 and set an “outperform” rating on the stock in a report on Thursday, February 19th. Gordon Haskett cut their price target on Carvana from $435.00 to $350.00 and set a “hold” rating for the company in a research note on Friday, February 20th. Barclays reduced their price target on Carvana from $530.00 to $450.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Citigroup lowered their price objective on Carvana from $550.00 to $465.00 and set a “buy” rating on the stock in a research note on Thursday, February 19th. Finally, BTIG Research dropped their price objective on Carvana from $535.00 to $455.00 and set a “buy” rating for the company in a report on Thursday, February 19th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Carvana presently has an average rating of “Moderate Buy” and an average price target of $440.59.

Carvana Price Performance

Shares of Carvana stock opened at $328.74 on Monday. The company has a quick ratio of 2.73, a current ratio of 4.31 and a debt-to-equity ratio of 1.15. The stock has a market capitalization of $71.94 billion, a price-to-earnings ratio of 40.89 and a beta of 3.60. Carvana has a twelve month low of $148.25 and a twelve month high of $486.89. The company has a 50-day simple moving average of $397.33 and a two-hundred day simple moving average of $380.49.

Institutional Trading of Carvana

Several institutional investors and hedge funds have recently modified their holdings of CVNA. Royal Bank of Canada grew its position in Carvana by 40.8% in the first quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock valued at $6,243,000 after acquiring an additional 8,654 shares during the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Carvana by 251.4% in the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after acquiring an additional 181 shares during the last quarter. Assetmark Inc. boosted its stake in shares of Carvana by 458.2% in the 2nd quarter. Assetmark Inc. now owns 441 shares of the company’s stock valued at $149,000 after purchasing an additional 362 shares in the last quarter. Atria Investments Inc acquired a new stake in shares of Carvana in the 2nd quarter valued at approximately $744,000. Finally, Huntington National Bank grew its holdings in shares of Carvana by 168.4% during the 2nd quarter. Huntington National Bank now owns 212 shares of the company’s stock valued at $71,000 after purchasing an additional 133 shares during the last quarter. 56.71% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, insider Paul W. Breaux sold 8,473 shares of Carvana stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $475.00, for a total value of $4,024,675.00. Following the transaction, the insider directly owned 69,289 shares of the company’s stock, valued at $32,912,275. This trade represents a 10.90% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Thomas Taira sold 10,000 shares of the company’s stock in a transaction on Friday, December 12th. The stock was sold at an average price of $475.00, for a total value of $4,750,000.00. Following the sale, the insider owned 69,880 shares of the company’s stock, valued at $33,193,000. The trade was a 12.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 132,621 shares of company stock valued at $59,163,610 over the last three months. 16.36% of the stock is owned by corporate insiders.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.