What's Going On With Carvana Stock Thursday?

Carvana Co CVNA shares are moving lower. The stock appears to be trading down in sympathy with shares of competitor CarMax Inc KMX, which fell on worse-than-expected earnings results.

What Happened With KMX: Carmax reported fourth-quarter revenue of $5.63 billion, which missed the consensus estimate of $5.79 billion, according to Benzinga Pro. The company reported quarterly earnings of 32 cents per share, which missed estimates of 49 cents per share.

Net revenues were down 1.7% on a year-over-year basis, while comparable sales increased 0.1% compared to the prior year’s fourth quarter. Combined retail and wholesale used vehicle unit sales were 287,603, representing a decline of 0.9% from the prior year’s quarter.

“We are encouraged by the performance of our business during the fourth quarter. We reported growth in total used unit sales and comps, delivered strong retail and wholesale gross profit per unit, continued to actively manage SG&A and grew CAF income significantly year-over-year,” said Bill Nash, president and CEO of CarMax.

CarMax maintained its goal to sell more than 2 million combined retail and wholesale units annually, but extended the timeframe to between fiscal year 2026 and fiscal year 2030 due to uncertainty in the timing of market recovery and a continued focus on profitable market share growth. CarMax shares were down nearly 7% at last check.

Carvana is due to report its quarterly financial results after the market close on May 1. The company is expected to report a loss of 77 cents per share and revenue of $2.649 billion, according to estimates from Benzinga Pro.

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Is CVNA A Good Stock To Buy?

Wall Street analysts view Carvana on the whole as a Neutral, given the history of coverage over the past three months. John Colantuoni from Jefferies is the most optimistic, expecting a 183.33% rise in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Carvana rose 90.61%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 14.56% over the past year.

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CVNA Price Action: Carvana shares were down 3.32% at $77.85 at the time of publication, according to Benzinga Pro.

Photo: Shutterstock.