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Core Points - Carvana Co. (NYSE: CVNA) experienced a 9% drop in after-hours trading despite beating both top and bottom-line estimates for the fourth quarter [1] Group 1 - The company reported strong growth in its operations, contributing to its financial performance [1]

Used car retailer Carvana Co (NYSE:CVNA) was last seen down 12.9% at $245.39, despite smashing fourth-quarter earnings estimates and projecting strong growth in 2025. It's unclear what exactly is dragging the stock lower, especially after several analysts lifted their price targets after the event.The stock's valuation was already high heading into earnings. CVNA notched a three-year high of $292.84 before turning lower yesterday, and the share are up a massive 393% year-over-year. Call traders are still op ...

Shares of Carvana (CVNA) have been strong performers lately, with the stock up 20.4% over the past month. The stock hit a new 52-week high of $292.84 in the previous session. Carvana has gained 38.6% since the start of the year compared to the 8.4% move for the Zacks Retail-Wholesale sector and the 9.5% return for the Zacks Internet - Commerce industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of ...

Used car e-retailer Carvana (CVNA) reported fourth-quarter earnings of 56 cents per share, which breezed past the Zacks Consensus Estimate of 24 cents and the year-ago quarter’s loss of $1 per share. Better-than-expected volumes and gross profits from wholesale vehicle sales led to the outperformance. Revenues of $3.55 billion beat the Zacks Consensus Estimate of $3.33 billion and rose 46.3% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Key HighlightsTotal gross profi ...

Financial Data and Key Metrics Changes - In 2024, Carvana achieved an adjusted EBITDA of $1.38 billion, with an adjusted EBITDA margin of 10.1%, marking it as the most profitable public automotive retailer in U.S. history [20][29] - The company reported a net income of $404 million and a net income margin of 3.1% for the year [20][29] - For Q4 2024, retail units sold totaled 114,379, a 50% increase year-over-year, with revenue reaching $3.547 billion, up 46% [21][22] Business Line Data and Key Metrics Changes - Non-GAAP retail GPU was $3,331, an increase of $361 year-over-year, driven by lower retail depreciation rates and reduced reconditioning costs [23] - Non-GAAP wholesale GPU decreased by 24% to $8.57, attributed to faster growth in retail units compared to wholesale units [24] - Non-GAAP other GPU increased to $2,728, up $849, due to higher spreads between origination interest rates and benchmark rates [25] Market Data and Key Metrics Changes - Carvana holds a 1% nationwide market share, with the largest competitor at 2% and the top 100 competitors combined at 10% [8][12] - The company integrated six of the 56 ADESA sites in 2024, with plans to open approximately 10 more mega sites in 2025 [10] Company Strategy and Development Direction - Carvana aims to leverage its unique business model to scale operations, targeting a capacity of approximately 3 million retail units through the integration of ADESA mega sites [9][10] - The company focuses on enhancing customer experience and operational efficiency, with plans to continue improving inventory selection and brand awareness [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving significant growth in both retail units sold and adjusted EBITDA in 2025, assuming a stable environment [31] - The company is committed to deleveraging its balance sheet while maintaining a strong liquidity position, with over $1.7 billion in cash and $3.6 billion in committed liquidity resources at the end of 2024 [30] Other Important Information - Carvana's operational efficiency initiatives led to a $1,165 reduction in non-GAAP SG&A expenses per retail unit sold [26] - The company plans to continue investing in inventory to drive customer satisfaction and conversion rates [39] Q&A Session Summary Question: Inventory management and customer experience improvements - Management emphasized the importance of selection in driving customer satisfaction and conversion, indicating a preference for increasing inventory despite potential depreciation risks [36][39] Question: GPU and margin drivers - Management noted that there are still fundamental gains to be achieved in GPU, with expectations for operational efficiencies to drive margins higher [58][60] Question: Loan sales strategy - The company plans to maintain a diversified funding strategy for loan sales, combining whole loan sales and securitization [75] Question: Credit rating improvement - Management highlighted the importance of strong financial metrics to improve credit ratings, with a focus on reducing net debt to adjusted EBITDA [84] Question: Growth capacity limitations - Management identified reconditioning capacity and operational execution as key factors limiting growth, with plans to scale operations effectively [88][89] Question: Market expansion and unit growth - Management indicated that future growth will primarily come from taking market share in existing markets rather than expanding into new ones [95][96]

For the quarter ended December 2024, Carvana (CVNA) reported revenue of $3.55 billion, up 46.3% over the same period last year. EPS came in at $0.56, compared to -$1.00 in the year-ago quarter.The reported revenue represents a surprise of +6.65% over the Zacks Consensus Estimate of $3.33 billion. With the consensus EPS estimate being $0.24, the EPS surprise was +133.33%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Carvana (CVNA) came out with quarterly earnings of $0.56 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to loss of $1 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this company would post earnings of $0.23 per share when it actually produced earnings of $0.64, delivering a surprise of 178.26%.Over the last four quarters, the company has surpassed ...

Wednesday, February 19, 2025Market indexes fought back and closed in the green for today’s trading session — all but the small-cap Russell 2000, which also improved but didn’t quite make it into positive territory. The S&P 500 set its second-straight record closing high, at 6144, but ultimately today’s gains were modest.The Dow closed up +71 points, or +0.16% on the day. The S&P 500 grew +14 points, +0.24%. The Nasdaq added almost +15 points, +0.075%, while the Russell 2000 was -7.9 points for the session, ...

Carvana reported better-than-expected earnings, posting record profitability and significant sales growth in Q4 2024.Carvana (CVNA -0.95%), a leading e-commerce platform for buying and selling cars, has released its earnings for the fourth quarter of 2024, detailed on February 19, 2025. The highlight of the quarter was the company's performance on key financial metrics, exceeding analyst expectations. Diluted earnings per share (EPS) reached $0.56, far above the predicted $0.31. Additionally, revenue increa ...