Online used car dealer Carvana (NYSE: CVNA) will be reporting earnings tomorrow after the bell. Here’s what you need to know.
Carvana beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $3.41 billion, up 14.9% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
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 25.1% year on year to $3.47 billion, a reversal from the 18.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 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 four times 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. Netflix delivered year-on-year revenue growth of 15%, meeting analysts’ expectations, and Coursera reported revenues up 6.4%, topping estimates by 1.2%. Netflix traded up 11.1% following the results while Coursera was down 9.7%.
Read our full analysis of Netflix’s results here and Coursera’s results here.
Investors in the consumer internet segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Carvana is up 17.9% during the same time and is heading into earnings with an average analyst price target of $172.40 (compared to the current share price of $205.25).
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