Shares of Carvana (NYSE: CVNA) tumbled 15% on Thursday after analysts raised concerns over the used-car platform’s vague 2025 outlook, offsetting an otherwise robust fourth-quarter performance.
The company posted earnings of $0.56 per diluted share on revenue of $3.55 billion for the quarter, beating Bloomberg consensus estimates of $0.31 per share and $3.34 billion. Adjusted EBITDA reached $359 million, topping forecasts of $328.9 million.
Retail unit sales hit 114,379—above the expected 108,339—while gross profit per vehicle clocked in at $6,671, edging past the $6,625 consensus estimate and showing faster year-over-year growth than the prior quarter.
Despite these wins, analysts at DA Davidson pointed to a softer-than-expected retail gross profit per unit as a weak spot. The unadjusted figure landed at $3,226, up 15% from last year but below the 16% growth estimate and well off the 30% surge from the previous quarter.
“This beat was less than it has been,” the analysts noted. “It’s not a bad number, just not up to last quarter’s growth and heightened expectations.”
Meanwhile, Carvana (NYSE: CVNA) struck an optimistic tone, projecting “significant growth” in retail units sold and core profit for 2025, alongside a sequential uptick in the current quarter. The company touted its positioning for a “strong” year ahead. However, Wall Street wanted more.
Analysts at Jefferies said they needed “more details” on the first-quarter and full-year outlook to feel confident about the sustainability of Carvana’s economics as sales volume rises. Morgan Stanley analysts echoed that sentiment, pinning the stock’s post-earnings slide on the lack of a specific 2025 margin forecast.
