Carvana's Q2 Earnings Preview: Buy, Sell or Hold?

Carvana CVNA is set to release Q2 2025 results, with a Zacks Consensus Estimate of $1.10 per share and $4.56 billion in revenue. The earnings estimate has grown 685.7% YoY, and revenues are expected to increase 33.6% YoY. The company's retail sales are gaining momentum, and it expects a 33.8% YoY increase in retail unit sales. Carvana's turnaround strategy is also paying off, with adjusted EBITDA expected to grow nearly 48% YoY to $524.2 million. Shares have surged 60% YTD, outperforming its peers CarMax and Sonic Automotive.

Carvana (CVNA) is poised to release its Q2 2025 financial results, with analysts and investors closely monitoring the company's performance. According to the Zacks Consensus Estimate, Carvana is expected to report earnings per share (EPS) of $1.10, a 685.7% year-over-year (YoY) increase. Revenue is projected to reach $4.56 billion, a 33.6% YoY growth [1]. The company's retail sales are showing strong momentum, with a projected 33.8% YoY increase in retail unit sales. Carvana's turnaround strategy is evident in the expected adjusted EBITDA growth of nearly 48% YoY to $524.2 million.

JPMorgan has recently boosted its price target for Carvana to $350, maintaining an Overweight rating ahead of the Q2 2025 results. Despite expectations of a slight setback in margins, the analyst notes that Carvana's rapid market share growth could lead to upward revisions in future earnings estimates [2]. The long-term outlook for Carvana remains positive, with promising expansion and strong financial health indicated by a perfect Piotroski Score of 9.

Analysts from Needham, Mizuho, Oppenheimer, Wolfe Research, and Compass Point have also upgraded their ratings for Carvana. Oppenheimer analyst Brian Nagel upgraded Carvana's rating from Perform to Outperform and increased the price target to $450. Other analysts, including Needham's Joseph Stringer and Mizuho's Dan Dolev, have also expressed bullish outlooks on the stock [3].

Carvana's shares have surged 60% year-to-date (YTD), outperforming its peers CarMax and Sonic Automotive. The company's strong financial performance and positive analyst ratings indicate a promising outlook for investors.

References:
[1] https://finance.yahoo.com/news/carvana-cvna-stock-declines-while-220002420.html
[2] https://www.ainvest.com/news/jpmorgan-boosts-carvana-price-target-350-q2-report-2507/
[3] https://www.benzinga.com/analyst-stock-ratings/upgrades/25/07/46628382/this-gilead-sciences-analyst-turns-bullish-here-are-top-5-upgrades-for-friday