Carvana (NYSE:CVNA) Shares Gap Down Following Analyst Downgrade
Carvana said it expects $1.3 billion to $1.6 billion in second-half adjusted earnings, pointing to slower growth after record quarterly results.
- On Wednesday, shares of Carvana fell 20% in after-hours trading after the auto retailer issued 2026 earnings guidance of $2.7 billion to $3 billion, missing analyst expectations.
- The company reported record second-quarter results, with revenue reaching $7.38 billion, topping LSEG analyst estimates of $6.91 billion, and net income climbing $205 million year-over-year.
- Vehicle sales surged 38% to 197,325 units from April through June, though adjusted margins of 10.4% fell 2 percentage points from a year earlier as expansion efforts continued.
- Carvana CEO Ernie Garcia reaffirmed the company remains on track to sell 3 million cars annually and achieve a 13.5% adjusted EBITDA margin by 2030 to 2035.
- Garcia emphasized the company's growth runway, stating, "We have only 2% market share of used retail and 1.5% market share of all automotive retail. Our runway is huge.
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Carvana rides used-car demand to record quarter
Online used-car retailer Carvana posted a record second quarter as more Americans turned to affordable used vehicles instead of buying new. The numbers Carvana sold nearly 200,000 vehicles during the quarter, a roughly 40% increase from a year earlier. Revenue climbed 52% to about $7.4 billion, while profit jumped to $310 million from $183 million. “The experience we deliver to our customers is simple, fun, and fair, building our brand and driv…
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