Carvana Stock Falls After Earnings as Guidance Leaves More Questions Than Answers -- Barrons.com

By Kit Norton

Shares of Carvana fell Thursday after the used-car retailer reported second-quarter earnings that mostly met expectations. Guidance, however, left investors scratching their heads.

Carvana stock declined 7.2% to $61.56 in premarket trading on Thursday. William Blair analyst Sharon Zackfia wrote Thursday that the share price decline was due to an in-line quarter alongside profit guidance that "sparked concern at the low end."

The car dealer late Wednesday reported adjusted earnings before interest, taxes, depreciation, and amortization of $769 million for the second quarter, topping analysts' consensus of $764.9 million. Revenue grew 52% to $7.37 billion, coming in above Wall Street expectations of $6.9 billion, according to FactSet.

Carvana sold 197,325 vehicles at retail in the period, up 38% from a year ago. That number was also in-line with the consensus of around 197,000 units.

Looking ahead to the third quarter, Carvana forecast a "sequential increase" in retail units sold. For the full year, the company expects adjusted Ebitda of $2.7 billion to $3 billion. The consensus view on Wall Street is for $2.95 billion, according to FactSet.

BTIG analyst Marvin Fong wrote Wednesday that the guidance was weighing on Carvana stock.

"In a skittish market, such guidance isn't going to be rewarded," Fong wrote.

Zackfia also noted the guidance implies profit growth of 10% to 35% in the second half of the year. The analyst added the wide range is "particularly perplexing" as management hasn't suggested an uptick in investment spending to support growth.

Write to Kit Norton at kit.norton@barrons.com

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July 30, 2026 08:09 ET (12:09 GMT)