Carvana Q2 Beat Overshadowed by 14% Plunge and Analyst Target Cuts
CVNA is trading near its 52-week low of $54.464 (9.4% above the low).
Summary
Carvana posted a record Q2 with EPS of $0.42 beating $0.36 estimates and revenue of $7.37B, yet shares fell 14.22% on July 30. The sell-off follows yesterday's initial results release and comes as Morgan Stanley cut its price target to $90 and Needham maintained at $120. The market appears to be reacting to forward guidance or margin concerns despite the 10th straight quarter of growth. Full-year adjusted EBITDA guidance of $2.7B-$3.0B may have disappointed relative to elevated expectations. This is the second day of trading on these results, with the stock now down significantly from pre-release levels.
At the time of this announcement, CVNA was trading at $59.60 on NYSE in the Trade & Services sector, with a market capitalization of approximately $65.4B. The 52-week trading range was $54.46 to $97.38. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.