Online used car dealer Carvana (NYSE: CVNA) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Carvana beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $4.84 billion, up 41.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and impressive growth in its units. It reported 143,280 units sold, up 41.2% year on year.
Is Carvana a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Carvana’s revenue to grow 39.1% year on year to $5.08 billion, improving from the 31.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 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 Q3 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 10.3%, beating analysts’ expectations by 2.1%, and Netflix reported revenues up 17.2%, in line with consensus estimates. Coursera traded down 12.7% following the results while Netflix was also down 10.1%.
Read our full analysis of Coursera’s results here and Netflix’s results here.
Investors in the consumer internet segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Carvana is down 8.9% during the same time and is heading into earnings with an average analyst price target of $425.85 (compared to the current share price of $357.74).
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