CVNA Q4 Earnings Beat; Shares Drop on Lack of Guidance Specificity

Financial Results

Online car retailer Carvana (CVNA) reported a revenue and profit beat for Q4 2024:

* Revenue: $3.55 billion (vs. $3.34 billion estimated)
* Earnings per share: $0.56 (vs. $0.31 estimated)
* Adjusted EBITDA: $359 million (vs. $329.4 million expected)

Unit Sales and Inventory

* Q4 retail unit sales: 114,379 (vs. 108,339 estimated)
* Full-year 2024 sales: 416,000 retail units sold (up 33%)
* Record annual revenue: $13.67 billion

Outlook

Carvana expects significant growth in both retail unit sales and adjusted EBITDA for full-year 2025, with sequential increases in both metrics in Q1 (assuming stable market conditions).

Market Reaction

Despite the earnings beat, CVNA shares fell over 14% in early trading on Thursday. Analysts expressed concerns about the lack of specific forward guidance during the conference call.

Background

* Carvana sells used cars exclusively online, which gained popularity during the pandemic.
* The company has scaled its operations and increased its inventory in recent years.
* Rising used car prices and operating costs have impacted Carvana's profitability in the past.
* The company turned its first annual profit in 2023 after cutting operating costs and refinancing debt.

Recent Controversy

In January 2025, short seller Hindenburg Research accused Carvana of accounting irregularities and questionable lending practices. Carvana has denied these allegations.