Carvana Stock Is Moving Higher Thursday: What's Going On?

Carvana Co. CVNA shares are trading higher Thursday after the company reported better-than-expected first-quarter earnings on Wednesday after the market closed.

The Details: Carvana reported earnings per share of $1.51, beating the consensus estimate of 60 cents. Furthermore, the company reported sales of $4.23 billion, beating the consensus estimate of $3.98 billion and representing a 38% year-over-year climb.

Carvana reported it sold 133,898 retail units, representing a 46% year-over-year increase. The company announced its next management objective is to sell 3 million retail units per year at an Adjusted EBITDA margin of 13.5% within the next 5 to 10 years.

“In Q1, Carvana set a new record for retail units while also driving record profitability and hitting our highest customer net promoter score in nearly three years,” said Ernie Garcia, Carvana founder and CEO.

“We are incredibly well positioned for the path ahead and have very clear visibility to even stronger financial performance, much larger scales, and even better customer experiences. As Carvana grows larger and more efficient, we look forward to making our offering even faster and more convenient, and sharing the value we create with our customers as we continue our mission of changing the way people buy and sell cars.”

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

• Wells Fargo analyst David Lantz maintained an Overweight rating on Carvana and raised the price target from $290 to $310.
• Baird analyst Colin Sebastian maintained a Neutral rating on Carvana and raised the price target from $200 to $275.

Related Link: MSTR Stock Climbs Over 5% In Thursday Pre-Market: What’s Going On?

CVNA Price Action: At the time of writing, Carvana stock is trading 9.44% higher at $283.63, according to data from Benzinga Pro.

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