Carvana (NYSE:CVNA) is an online platform for buying and selling used cars, offering a seamless experience for customers to purchase vehicles without visiting a dealership. Competing with companies like Vroom and Shift Technologies in the online used car market, Carvana has recently received an "Outperform" rating from RBC Capital, reflecting confidence in its future performance.
Carvana's stock price is currently $284.53, following a 52-week high of $291.27. This high indicates strong market performance ahead of its upcoming earnings report, despite the stock remaining below its 2021 peak. The surge in used car sales, as noted by Landon Swan from LikeFolio, is a key driver of this bullish trend.
Since mid-January, Carvana's shares have surged over 50%, driven by the rebound in used car sales and the market's disregard for the Hindenburg short report. The company has bolstered its financial position with a renewed credit facility from Ally Bank. Additionally, stabilized auto loan default rates support Carvana's foundation for 2025.
Carvana is set to announce its fourth-quarter 2024 financial results, with the Zacks Consensus Estimate predicting earnings of 24 cents per share and revenues of $3.33 billion. This marks a significant improvement from the previous year's loss of $1 per share. The expected revenue indicates a 37.2% year-over-year increase.
Looking ahead to 2025, Carvana projects revenues of $16.24 billion, a 20.8% rise from the previous year, and an EPS of $2.85, representing a substantial 123% increase. Over the past four quarters, Carvana has exceeded EPS estimates three times, showcasing its strong financial performance.
