Carvana Analysts Slash Their Forecasts Following Q3 Earnings

Carvana Co (NYSE:CVNA) on Wednesday posted upbeat financial results for the third quarter.

Carvana reported third-quarter revenue of $8.04 billion, beating analyst estimates of $7.70 billion, according to Benzinga Pro. The company reported earnings of 39 cents per share for the quarter, missing estimates of 42 cents per share.

"In the last two years, we have doubled the number of customers we serve while continuing to lead the industry in unit economics and giving value back to our customers by offering twice the selection, faster deliveries and lower interest rates on their loans," said Ernie Garcia, co-founder and CEO of Carvana.

Carvana anticipates an increase in retail units sold in the fourth quarter compared to the third quarter. The company also guided for full-year adjusted EBITDA to be the higher end of the company’s previously forecasted range of $2.7 billion to $3 billion. Adjusted EBITDA in the third quarter came in at approximately $800 million.

Carvana shares gained 7.8% to $63.66 in pre-market trading.

These analysts made changes to their price targets on Carvana following earnings announcement.

• Needham analyst Chris Pierce maintained the stock with a Buy and lowered the price target from $120 to $100.
• BTIG analyst Marvin Fong maintained the stock with a Buy and lowered the price target from $87 to $82.

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