Carvana (CVNA) Q2 Earnings: What To Expect

Online used car dealer Carvana (NYSE: CVNA) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.

Carvana beat analysts’ revenue expectations by 6.2% last quarter, reporting revenues of $4.23 billion, up 38.3% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ EBITDA estimates and impressive growth in its units. It reported 133,898 units sold, up 45.7% year on year.

Is Carvana a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Carvana’s revenue to grow 34.3% year on year to $4.58 billion, improving from the 14.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.14 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 7 upward revisions over the last 30 days (we track 17 analysts). Carvana has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Carvana’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Alphabet delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 2.6%, and Coursera reported revenues up 9.8%, topping estimates by 3.7%. Alphabet’s stock price was unchanged after the resultswhile Coursera was up 36.2%.

Read our full analysis of Alphabet’s results here and Coursera’s results here.

There has been positive sentiment among investors in the consumer internet segment, with share prices up 4.7% on average over the last month. Carvana’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $337.05 (compared to the current share price of $337.90).

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