Carvana (CVNA) Reports Q4 Losses And Revenue Delays

(CTN News) – According to the Zacks Consensus Estimate, Carvana (CVNA) lost $0.95 per share during the quarter compared to the consensus estimate of $0.95 per share.

Compared to a loss of $0.97 per share last year, this represents an improvement. A non-recurring item has been taken into account when calculating these figures.

The earnings surprise for this quarter is -5.26%. It was expected that this Carvana company would post a loss of $0.85 per share, but it actually produced earnings of $0.23, delivering a 127.06% surprise.

In the past four quarters, the company has exceeded consensus earnings per share estimates three times.

Carvana, which is part of the Zacks Internet – Commerce industry, reported revenues of $2.42 billion for the quarter ended December 2023, which was below the Zacks Consensus Estimate by 4.76%. The revenues are down from $2.84 billion a year ago. Three out of the last four quarters, the company has exceeded consensus revenue estimates.

Using the recently released numbers and future earnings expectations, the stock’s immediate price movement will be largely determined by the management’s commentary during the earnings call.

Since the beginning of the year, Carvana shares have lost approximately 6.7%. The S&P 500 has gained 4.4% during the same period.

Carvana’s future: what lies ahead?

Even though Carvana has underperformed the market so far this year, investors wonder: what’s next?

Despite the fact that there is no easy answer to this question, investors can use a reliable indicator such as the company’s earnings outlook to help them address it. The analysis does not only include current consensus earnings estimates for the upcoming quarter(s), but also how these expectations have evolved over the past few months.

According to empirical research, there is a strong correlation between near-term stock movements and changes in earnings estimates.

It is possible for investors to track such revisions on their own or to use a tried-and-tested rating tool such as the Zacks Rank, which is well known for its ability to forecast earnings revisions accurately.

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