Wall Street analysts forecast that Carvana (CVNA) will report quarterly earnings of $1.33 per share in its upcoming release, pointing to a year-over-year increase of 107.8%. It is anticipated that revenues will amount to $4.99 billion, exhibiting an increase of 36.5% compared to the year-ago quarter.
The current level reflects an upward revision of 4.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Carvana metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Sales and operating revenues- Retail vehicle sales, net' will reach $3.67 billion. The estimate indicates a change of +44.4% from the prior-year quarter.
Analysts expect 'Sales and operating revenues- Other sales and revenues' to come in at $421.03 million. The estimate points to a change of +29.2% from the year-ago quarter.
Analysts' assessment points toward 'Sales and operating revenues- Wholesale sales and revenues' reaching $990.65 million. The estimate indicates a change of +26% from the prior-year quarter.
The combined assessment of analysts suggests that 'Unit sales - Retail vehicle unit sales' will likely reach 152,107 . The estimate compares to the year-ago value of 108,651 .
The consensus estimate for 'Per retail unit gross profit - Retail vehicle' stands at $3555.47 . Compared to the present estimate, the company reported $3497.00 in the same quarter last year.
The collective assessment of analysts points to an estimated 'Per retail unit gross profit - Total' of $7360.30 . The estimate is in contrast to the year-ago figure of $7427.00 .
It is projected by analysts that the 'Per retail unit gross profit - Other' will reach $2991.05 . Compared to the present estimate, the company reported $3000.00 in the same quarter last year.
The consensus among analysts is that 'Unit sales - Wholesale vehicle unit sales' will reach 72,150 . Compared to the current estimate, the company reported 56,487 in the same quarter of the previous year.
According to the collective judgment of analysts, 'Per unit revenue - Retail vehicles' should come in at $24024.29 . Compared to the current estimate, the company reported $23405.00 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Per unit revenue - Wholesale vehicles' should arrive at $10211.53 . Compared to the current estimate, the company reported $9861.00 in the same quarter of the previous year.
Analysts forecast 'Markets at end of period (metropolitan statistical areas)' to reach 316 . The estimate compares to the year-ago value of 316 .
The average prediction of analysts places 'Per retail unit gross profit - Wholesale' at $923.12 . The estimate is in contrast to the year-ago figure of $930.00 .
View all Key Company Metrics for Carvana here>>>
Shares of Carvana have experienced a change of -7.9% in the past month compared to the +1.3% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), CVNA is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Carvana Co. (CVNA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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