Earnings to watch: Carvana (CVNA) reports Q3 results tomorrow
Online used car dealer Carvana (NYSE: CVNA) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Carvana beat analysts’ revenue expectations last quarter, reporting revenues of $7.38 billion, up 52.4% year on year. It was a mixed quarter for the company, with impressive growth in its units but full-year EBITDA guidance missing analysts’ expectations significantly. It reported 197,325 units sold, up 37.7% year on year.
Is Carvana a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Carvana’s revenue to grow 35.4% year on year, slowing from the 54.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Carvana has a history of exceeding Wall Street‘s expectations.
Looking at Carvana’s peers in the consumer internet segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Meta delivered year-on-year revenue growth of 26.1%, beating analysts’ expectations by 2%, and Netflix reported revenues up 11.8%, in line with consensus estimates. Meta traded down 7% following the results while Netflix was also down 5.3%.
Read our full analysis of Meta’s results here and Netflix’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 6.1% on average over the last month. Carvana is down 6.2% during the same time and is heading into earnings with an average analyst price target of $81.33 (compared to the current share price of $56.75).
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