Carvana forecasts annual core profit below estimates on supply pressure, shares slump (updated)

Carvana

29/07/2026 21:23

Recasts with annual forecast missing analyst estimates and share move
July 29 (Reuters) - Carvana CVNA.N forecast full-year adjusted core profit below Wall Street expectations on Wednesday, pressured by reduced supply of newer used vehicles, sending shares about 15% lower in extended trading.
While demand for used cars has remained strong, fewer new pre-owned vehicles has kept wholesale prices higher, pressuring dealer margins across the industry.

Here are the details 
The company expects its full-year adjusted core profit to be between $2.7 billion and $3.0 billion. The midpoint of the range is lower than analysts' estimate of $2.97 billion, according to data compiled by LSEG.
This is Carvana's first ever annual forecast.
Carvana said higher used-vehicle prices during the quarter helped lift its retail selling prices.
Its quarterly retail sales rose 38% to 197,325 units from a year ago.
Shares of the company, best known for its car vending machines, are down by nearly 18% this year.
Its second-quarter revenue rose to $7.38 billion from $4.84 billion a year ago. 
On an adjusted basis, its quarterly core profit rose to $769 million from $601 million a year earlier.

 (Reporting by Nathan Gomes and Nandan Mandayam in Bengaluru; Editing by Sahal Muhammed)
 ((Nathan.Gomes@thomsonreuters.com;))