Carvana (NYSE:CVNA) Issues Earnings Results, Beats Expectations By $1.37 EPS

Carvana (NYSE:CVNA) posted its earnings results on Wednesday, April 29th. The company reported $1.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $1.37, FiscalAI reports. Carvana had a net margin of 6.40% and a return on equity of 41.46%. The business had revenue of $6.43 billion for the quarter, compared to analysts’ expectations of $6.12 billion.

Here are the key takeaways from Carvana’s conference call:

• Record quarter — Carvana sold 187,393 retail units, reported $6.432B revenue, GAAP operating income of $581M and adjusted EBITDA of $672M, and cut net debt/TTM adjusted EBITDA to 1.1x.
• Management says it remedied prior recon execution issues by deploying new data integrations and manager tools with on‑site testing, driving labor efficiency to near all‑time best levels in April, though financial benefit will lag due to accounting timing.
• The company expects a ≈$100–$200 year‑over‑year headwind to retail GPU in Q2 from last year’s tariff benefit anniversary, lower shipping fees and narrower industry wholesale‑to‑retail spreads, and noted other GPU fell after giving customers lower interest rates.
• Carvana achieved meaningful SG&A leverage with a <$strong>170 decline in non‑GAAP SG&A per unit, but advertising rose <$strong>92 per unit and overheads were elevated this quarter due to share‑based comp vesting, weather costs and technology/AI investments.
• Outlook remains constructive — management expects sequential Q2 records in retail units and adjusted EBITDA and reiterates the long‑term target of selling 3 million cars per year at a 13.5% adjusted EBITDA margin by 2030–2035.

Carvana Price Performance

Shares of CVNA stock opened at $389.97 on Thursday. Carvana has a 1 year low of $255.79 and a 1 year high of $486.89. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The firm’s 50 day moving average is $339.08 and its 200-day moving average is $372.85. The firm has a market capitalization of $85.34 billion, a price-to-earnings ratio of 47.44, a PEG ratio of 27.67 and a beta of 3.55.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Citizens Jmp boosted their price target on Carvana from $92.00 to $103.00 and gave the company a “market outperform” rating in a research note on Friday, May 1st. Royal Bank Of Canada increased their price objective on Carvana from $88.00 to $92.00 and gave the stock an “outperform” rating in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $107.40 price objective on shares of Carvana in a report on Thursday, April 30th. Jefferies Financial Group reduced their target price on shares of Carvana from $97.00 to $95.00 and set a “buy” rating on the stock in a research note on Tuesday, April 14th. Finally, Citigroup reaffirmed an “outperform” rating on shares of Carvana in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.23.

Insiders Place Their Bets

In other Carvana news, Director J Danforth Quayle sold 14,500 shares of the stock in a transaction on Monday, March 9th. The stock was sold at an average price of $61.99, for a total value of $898,913.00. Following the transaction, the director directly owned 209,565 shares in the company, valued at approximately $12,991,772.61. This trade represents a 6.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, COO Benjamin E. Huston sold 50,000 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $76.99, for a total value of $3,849,600.00. Following the completion of the transaction, the chief operating officer owned 529,810 shares in the company, valued at $40,791,131.52. The trade was a 8.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 293,600 shares of company stock valued at $24,402,807 over the last quarter. Company insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

Large investors have recently made changes to their positions in the company. FIL Ltd acquired a new position in Carvana during the 4th quarter valued at about $201,000. Quinn Opportunity Partners LLC acquired a new stake in shares of Carvana during the 4th quarter worth approximately $211,000. AlphaCentric Advisors LLC acquired a new stake in shares of Carvana during the 4th quarter worth approximately $116,000. Brown Brothers Harriman & Co. raised its stake in shares of Carvana by 1,015.2% during the fourth quarter. Brown Brothers Harriman & Co. now owns 368 shares of the company’s stock worth $155,000 after buying an additional 335 shares during the last quarter. Finally, Equitable Holdings Inc. bought a new stake in shares of Carvana during the third quarter worth approximately $205,000. Institutional investors and hedge funds own 56.71% of the company’s stock.

Carvana Company Profile

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.