What's Going On With Carvana Stock Wednesday?

Author: Adam Eckert | July 31, 2024 03:08pm

Carvana Co (NYSE:CVNA) shares are in the spotlight Wednesday ahead of earnings after the bell. Here’s what you need to know before the report.

What To Know: Carvana will report financial results for the second quarter after the market close on Wednesday. The company is expected to report a quarterly loss of 7 cents per share and revenue of $3.244 billion, according to estimates from Benzinga Pro.

Last quarter, Carvana shares soared more than 30% after the used car retailer reported a surprise profit of 23 cents per share, beating analyst estimates for a loss of 77 cents per share. Revenue also jumped 16% on a year-over-year basis.

"With these strong results, significant fundamental margin opportunities ahead, and a nationwide infrastructure that can support multiples of our current scale, we have never been more confident in our opportunity to become the largest and most profitable automotive retailer and to buy and sell millions of cars,” CEO Ernie Garcia said at the time.

Carvana said it expected a sequential increase in its year-over-year growth rate in retail units in the second quarter, as well as a sequential increase in adjusted EBITDA. Carvana also said it expects to "comfortably deliver" on its outlook of year-over-year growth in retail units sold and adjusted EBITDA for full-year 2024.

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Here’s a look at recent analyst changes leading up to earnings:

• Wedbush analyst Seth Basham reiterated Carvana with a Neutral and maintained a price target of $120.

• JPMorgan analyst Rajat Gupta maintained Carvana with an Overweight and raised the price target from $150 to $155.

• Evercore ISI Group analyst Michael Montani maintained Carvana with an In-Line rating and raised the price target from $135 to $140.

• BTIG analyst Marvin Fong initiated coverage on Carvana with a Buy rating and set a price target of $155.

• JMP Securities analyst Nicholas Jones reiterated Carvana with a Market Outperform and maintained a price target of $150.

CVNA Price Action: Carvana shares are up more than 155% year-to-date heading into the print. The stock was up 7.34% at $136.09 at the time of publication Wednesday, per Benzinga Pro.

Photo: Shutterstock.

Posted In: CVNA