On July 30, Carvana Co. fell 14.9% in regular trading, trading at $59.885/share, with turnover of $348 million. The sharp decline was triggered by the company's first-ever annual profit guidance falling short of Wall Street expectations.
After the prior session's close, Carvana issued full-year adjusted EBITDA guidance of $2.7 billion to $3.0 billion, with the midpoint below the analyst consensus of $2.97 billion. The underwhelming outlook stems from a shortage of newer used vehicle supply, which has kept wholesale prices elevated and squeezed dealer margins industry-wide. Despite a strong Q2 showing — revenue of $7.376 billion surpassed the $6.907 billion estimate and EPS of $0.42 beat the $0.36 consensus by 16.67% — the supply-side headwinds overshadowed operational outperformance. Evercore ISI subsequently cut its price target to $75 from $86, while the stock had already dropped over 7% in overnight and pre-market sessions before selling intensified during regular hours.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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