Carvana slumps after core profit forecast disappoints

Carvana

30/07/2026 09:33

** Shares of online used-car retailer Carvana CVNA.N fall 8.8% to $60.49 premarket
** Co forecasts annual core profit below estimates, pressured by reduced supply of newer used vehicles
** Expects full-year adjusted core profit to be between $2.7 billion and $3.0 billion, with midpoint of the range falling short of analysts' estimate of $2.97 billion
     ** Q2 retail sales rose 38% to 197,325 units from a year ago, while revenue in the same period rose to $7.38 billion from $4.84 billion a year ago
** "CVNA's on a sometimes rocky, but still reliable path to millions of units/year at above-market profitability levels which investors remain skeptical of" - RBC Capital Markets
** At least three analysts cut PT 
** Average rating of 27 analysts is "buy"; their median PT is $89 - LSEG-compiled data
** Up to Wednesday's close, CVNA down 21.5% YTD

 (Reporting by Joel Jose in Bengaluru)
 ((joeljose@thomsonreuters.com))