Carvana Raises Q3 Profit Expectations
Analysts reaffirm the company's market rating because of the improved forecast.

Carvana revised its forecast for total gross profit per unit to $5,500, an increase of $500 from before.
IMAGE: Timasu, Pixabay
Executives from the Tempe-Arizona based Carvana raised their profit outlook for the third quarter, expecting momentum from an early-year turnaround to carry through the rest of the year.
According to a statement issued on Wednesday, Carvana expects adjusted earnings before interest, taxes, depreciation and amortization to exceed $75 million in the third quarter. Earlier, the company’s adjusted EBITDA outlook was "positive" and the consensus analyst estimate was $45.7 million.
According to a Barron’s report, the revision stems from Carvana:
Selling more loans in the third quarter
Operational improvements that include lowering costs at inspection centers and in-sourcing services
Record profit per unit in the first and second quarters
Carvana reported “significant fundamental gains” in vehicle profitability in retail and wholesale operations in the second quarter, Barron's reported, noting that the company has revised its forecast for total gross profit per unit in the quarter to over $5,500, an increase of $500 from before.
With a better forecast, Carvana is on track to recover from pandemic-related difficulties, and investors are taking notice. After reporting positive second-quarter results and announcing debt restructuring plans, company stock shares rose by as much as 12% during premarket trading on Wednesday, the Detroit News reported. By 9 a.m. today, they had increased by 7.2% to $47.20. in New York, the news outlet noted.
But Carvana’s early pandemic peak is still out of reach, with current stock value down by over 85%, the article noted.
Carvana's net income also has not been positive all year, partly because of the high interest expenses associated with debt, reported the Detroit News. However, a restructuring agreement announced in July should lower borrowings by $1.2 billion and enable Carvana to delay some interest payments for the next two years, the paper reported.
Carvana’s positive outlook prompted Colin Sebastian of Baird to raise his target for Carvana‘s stock to $45 from $25 while maintaining a Hold equivalent rating. According to FactSet data, 15 analysts have assigned Carvana stock a similar rating.
Based on the assumption that some fundamental changes will be sustainable, Sebastian revised his full-year 2024 estimate from a $1.60 loss per share to a $1.23 loss, reported the Detroit News. In contrast, FactSet's analysts predict a loss of $2.56 per share for 2024.
Originally posted on Auto Dealer Today
More Showroom

California Hybrids Reach State Record
The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.
Read More →
My Mercedes in the U.S.
The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.
Read More →
Used Sales Hit Summer Drag
The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.
Read More →
California Launches EV Rebate Program
Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.
Read More →
OEM Poll Sees Industry Evolution
Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.
Read More →
The Trade-In Paradox
Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.
Read More →
Focus on Vehicle Cabins
The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →