"Carvana) released its third-quarter earnings report last week, revealing record revenue of $5.6 billion, up 55% year-over-year, driven by 155,941 retail units sold, a 44% increase. However, the company posted earnings of $1.03 per share, missing analyst expectations of $1.30, amid concerns over subprime loan performance and operational costs. The market reacted sharply, selling off shares by as much as 17%, though the stock has since bounced 8% higher from its post-earnings low."
"According to analysts at Wolf Street, 60-day delinquencies for subprime auto loans hit 6.5% in September, the highest ever for that month in the last 30 years, up from 6.12% a year ago. Overall, the 60-plus-day rate for all auto loans held at 1.57%. The New York Federal Reserve further reported a flow into serious delinquency of 90 days or more of 2.99% for auto loans in Q3, up from 2.90% a year earlier, amid total household debt reaching $18.59 trillion."
Carvana reported record Q3 revenue of $5.6 billion, a 55% year-over-year increase, driven by 155,941 retail units sold, up 44%. The company missed consensus EPS, reporting $1.03 versus $1.30 expected, with subprime loan performance and operational costs weighing on results. Shares dropped as much as 17% after the report, later recovering about 8% from the post-earnings low, while remaining below the pre-report level. Analysts retain buy ratings with a consensus price target near $415, implying roughly 26% upside. Broader industry signals include rising auto loan delinquencies, flat loan balances, more cash transactions, and elevated household debt.
Read at 24/7 Wall St.
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