Why Is Carvana (CVNA) Up 17.1% Since Last Earnings Report?

A month has gone by since the last earnings report for Carvana (CVNA). Shares have added about 17.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Carvana due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Carvana Co. before we dive into how investors and analysts have reacted as of late.Carvana’s Q3 Earnings Lag EstimatesCarvana reported third-quarter earnings of $1.03 per share, which lagged the Zacks Consensus Estimate of $1.33 per share but rose from the year-ago quarter’s earnings of 64 cents per share. Better-than-expected revenues across all segments led to the outperformance. Revenues of $5.65 billion beat the Zacks Consensus Estimate by 11.6% and rose 55% year over year.Key HighlightsTotal gross profit amounted to $1.15 billion, up 42% year over year. Total gross profit per unit (GPU) was $7,362, decreasing from $7,427 in the year-ago period. SG&A expenses were $595 million, up 27% year over year. Carvana achieved an adjusted EBITDA of $637 million for the third quarter of 2025. Adjusted EBITDA margin in the quarter under review was 11.3%, down from 11.7% in the third quarter of 2024.Segmental PerformanceRetail vehicle sales totaled $3.99 billion in the quarter, rising 57.1%% year over year and topping our estimate of $3.4 billion amid higher-than-expected unit sales. In the reported quarter, the number of vehicles sold to retail customers rose 43.5% to 155,941 from the prior-year period and exceeded our estimate of 145,112 units. Gross profit amounted to $539 million, up 41.8% year over year. Gross profit per unit came in at $3,456, which fell from $3,497 generated in the year-ago period and missed our expectation of $3,649.In the third quarter, wholesale vehicle sales totaled $1.18 billion, up 49.7% year over year. Sales topped our estimate of $850.3 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 42.3% to 80,369 from the prior-year period and exceeded our estimate of 71,670 units. Gross profit came in at $135 million, up 33.7% from the corresponding quarter of 2024. GPU came in at $866, down 6.9% year over year, but topped our expectation of $485.In the period under consideration, other sales and revenues rose 45.4% year over year to $474 million and beat our forecast of $360.2 million. Gross profit was $474 million, up 45.4% year over year. GPU came in at $3,040, up 1.33% year over year. It, however, fell short of our estimate of $3,556.Financial PositionCarvana had cash and cash equivalents of $2.14 billion as of Sept. 30, 2025, compared with $1.72 billion as of Dec. 31, 2024. Long-term debt was $4.81 billion as of Sept. 30, 2025, compared with $5.26 billion recorded on Dec. 31, 2024.OutlookFor the fourth quarter of 2025, Carvana expects more than 150,000 retail unit sales. It reiterates its expectation for full-year 2025 adjusted EBITDA in the range of $2-$2.2 billion.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.The consensus estimate has shifted -5.89% due to these changes.VGM ScoresCurrently, Carvana has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Carvana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerCarvana belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Wayfair (W), has gained 9.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.Wayfair reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $0.70 for the same period compares with $0.22 a year ago.For the current quarter, Wayfair is expected to post earnings of $0.64 per share, indicating a change of +356% from the year-ago quarter. The Zacks Consensus Estimate has changed +90.1% over the last 30 days.Wayfair has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA): Free Stock Analysis Report Wayfair Inc. (W): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks