Carvana Stock Tumbles After Moving Earnings Up to Wednesday
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Carvana will be reporting earnings on Wednesday, moving up the release date by two weeks.
Mark Ralston/AFP/Getty Images
Carvana
stock tumbled 9% in premarket trading after the used-car retailer moved forward the release of its second-quarter earnings by more than two weeks.
Carvana
(ticker: CVNA), the online auto retailer, will now report earnings before the open Wednesday, having previously set a date of Aug. 3 for its results.
The stock has climbed 740% so far in 2023 as of Tuesday’s close. The shares c closed with a gain of 9% on Tuesday.
J.P. Morgan analysts downgraded the stock to Underweight from Neutral on Friday, arguing that Carvana’s valuation has gone beyond the level justified by recent improvements in the business. They have a target price of $10 on the stock, which closed at $39.80 Tuesday.
Carvana’s (ticker: CVNA) move to announce its earnings two weeks earlier than planned understandably was concerning investors, who seem to fear something bad is about to happen.
Analysts expect the company to report a second-quarter loss of $1.20 a share on sales of $2.6 billion, according to FactSet estimates. For the full year, they see a loss of $5.57 a share.
Write to Callum Keown at callum.keown@barrons.com
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