Key Stats for Carvana Stock
- Pre-market price change for Carvana stock: 9%
- $CVNA Share Price as of Apr. 29: $397
- 52-Week High: $487
- $CVNA Stock Price Target: $426
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What Happened?
Carvana (CVNA) stock is surging in pre-market trading after the company posted a record-breaking Q1 that blew past Wall Street expectations on both revenue and earnings.
- Revenue came in at $6.43 billion, up 52% from a year ago, well ahead of the $6.11 billion analysts had expected.
- Earnings per share hit $1.69, topping the $1.56 estimate.
- The company also reported adjusted EBITDA of $672 million and net income of $405 million, up from $373 million in the same quarter last year.
The real standout? Carvana sold 187,393 used cars in Q1, a 40% jump year-over-year and a new company record.
CEO Ernie Garcia called it the ninth straight quarter of being “the most profitable and fastest-growing automotive retailer.”
Looking ahead, management guided for another sequential increase in both retail units and adjusted EBITDA in Q2, which would set yet another all-time record on both fronts.
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What the Market Is Telling Us About Carvana Stock
Carvana stock had been under pressure heading into earnings, about 1% down for the year. But these results are a clear reminder of why the stock is up 63% over the past twelve months.
The numbers show the business is scaling well. SG&A expenses per unit fell significantly as the company grew, and its net debt ratio hit its lowest level ever at 1.1x. That’s a sign of improving financial health, not just top-line momentum.
One thing to watch: management flagged some pressure on per-unit gross profit in Q2, tied to narrower wholesale-to-retail price spreads in the used-car market. It’s a short-term headwind, but worth monitoring.
Overall, Carvana stock continues to reward investors who believe in its long-term model. With a target of 3 million car sales annually by 2030, the company still sees a long runway ahead.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
