Why Carvana (CVNA) Could Beat Earnings Estimates Again

Core Insights - Carvana (CVNA) has a strong history of exceeding earnings estimates, particularly in the last two quarters, with an average surprise of 155.80% [1][2] - The company reported earnings of $0.56 per share in the last quarter, surpassing the Zacks Consensus Estimate of$0.24 per share, resulting in a surprise of 133.33% [2] - In the previous quarter, Carvana's earnings were $0.64 per share against an expected$0.23, yielding a surprise of 178.26% [2] Earnings Estimates and Predictions - Estimates for Carvana have been trending upward, influenced by its history of earnings surprises [5] - The stock has a positive Zacks Earnings ESP of +6.27%, indicating analysts' bullish sentiment regarding its earnings prospects [8] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a high likelihood of another earnings beat [8] Earnings ESP and Market Behavior - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [7] - A negative Earnings ESP does not necessarily indicate an earnings miss, but it reduces predictive power [8]