Carvana Co. (NYSE:CVNA) shares are trading lower Thursday after the company reported mixed third-quarter financial results.
- CVNA is taking a hit from negative sentiment. Check the market position here.
What To Know: Carvana reported earnings per share of $1.03 for the third quarter, missing the consensus estimate of $1.24, according to Benzinga Pro. The company reported sales of $5.64 billion, beating the consensus estimate of $5.06 billion.
Carvana sold 155,941 retail units in the quarter, up 44% year-over-year, driving total revenue up 55% year-over-year. Net income totaled $263 million with net income margin of 4.7%. Adjusted EBITDA was $637 million, representing an 11.3% margin, while GAAP operating income was $552 million with a 9.8% margin. Margin pressure appears to be a point of concern for analysts.
Carvana said it expects to sell more than 150,000 retail units in the fourth quarter, which may be adding to the selling pressure on shares, given that the company sold nearly 156,000 vehicles in the third quarter.
Carvana also projected full-year 2025 adjusted EBITDA at or above the high end of its previously communicated range of $2 billion to $2.2 billion.
Analyst Changes: Following the earnings report, multiple analysts weighed in on the stock.
- BTIG analyst Marvin Fong maintained a Buy rating on Carvana with a price target of $450.
- BofA Securities analyst Michael McGovern maintained a Buy rating on Carvana and lowered the price target from $405 to $385.
- Needham analyst Chris Pierce reiterated a Buy rating on Carvana and kept a price target of $500.
Related Link: Takeda Lowers 2025 Outlook After Weak Q2 And Pipeline Impairment Charges
CVNA Price Action: At the time of writing, Carvana stock is trading 10.82% lower at $315.15, according to data from Benzinga Pro.
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