CVNA

With a market cap of $65.1 billion, Carvana Co. (CVNA) is an e-commerce platform for buying and selling used cars, allowing customers to browse vehicles, obtain financing, trade in their existing cars, and complete purchases entirely online. The Tempe, Arizona-based company also offers vehicle delivery or local pickup, along with complementary products such as vehicle service contracts and auto insurance. The online used car retailer is expected to announce its fiscal third-quarter earnings for 2026 after the market closes on Wednesday, Oct. 28. Ahead of the event, analysts expect CVNA to report a profit of $0.47 per share on a diluted basis, up 123.8% from $0.21 per share in the year-ago quarter. The company beat or met the consensus estimates in three of the last four quarters while missing the forecast on another occasion. - Broadcom's Hock Tan Says AI's Next Bottleneck Isn't Chips, Power, or Memory. It's Not a Tech Problem at All. - Google Hits Major Quantum Breakthrough. This Could Be a Game-Changer for GOOGL Stock. - 63 Reasons Point to CoreWeave's Default. Yet Goldman Sachs Upgraded It to a 'Buy' for 1 Key Reason. - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the current year, analysts expect CVNA to report EPS of $1.63, down 3.6% from $1.69 in fiscal 2025. However, its EPS is expected to rebound, rising 32.5% year over year to $2.16 in fiscal 2027. Carvana has struggled to keep pace with the broader market over the past year, with shares falling 10.2% even as the S&P 500 Index ($SPX) gained 14.4%. The stock also underperformed the State Street Consumer Discretionary Select Sector SPDR ETF's (XLY) 3.1% drop over the same time frame. Carvana has lagged behind the broader market over the past year amid investor concerns about its growth outlook, profitability sustainability, and exposure to fluctuations in used-car demand and financing conditions. Despite improvements in its business performance, uncertainty surrounding the durability of its recovery has weighed on investor sentiment. However, Carvana shares jumped 5% on Sept. 29, after Jefferies reiterated its "Buy" rating and $88 price target, citing proprietary data indicating September unit sales were tracking roughly 40% above Wall Street expectations. Analysts' consensus opinion on CVNA stock is reasonably bullish, with a "Moderate Buy" rating overall. Out of 22 analysts covering the stock, 13 advise a "Strong Buy" rating, three suggest a "Moderate Buy," and six give a "Hold." CVNA's average analyst price target is $83.67, indicating a potential upside of 42.5% from the current price of $58.72. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Amazon (AMZN) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This online retailer is expected to post quarterly earnings of $2.01 per share in its upcoming report, which represents a year-over-year change of +3.1%. Revenues are expected to be $202.11 billion, up 12.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Amazon, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -2.11%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Amazon will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Amazon would post earnings of $1.83 per share when it actually produced earnings of $1.88, delivering a surprise of +2.73%. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Amazon doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Carvana (CVNA), another stock in the Zacks Internet - Commerce industry, is expected to report earnings per share of $0.47 for the quarter ended September 2026. This estimate points to a year-over-year change of +123.8%. Revenues for the quarter are expected to be $7.63 billion, up 35.2% from the year-ago quarter. The consensus EPS estimate for Carvana has been revised 4.6% lower over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -11.02%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Carvana will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Carvana (CVNA) reports results for the quarter ended September 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 28. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.48 per share in its upcoming report, which represents a year-over-year change of +128.6%. Revenues are expected to be $7.63 billion, up 35.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 4.61% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Carvana, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -11.77%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Carvana will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Carvana would post earnings of $0.42 per share when it actually produced earnings of $0.42, delivering no surprise. Over the last four quarters, the company has beaten consensus EPS estimates two times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Carvana doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Carvana (CVNA) sold a record 197,325 cars in its latest quarter. While that figure is up 38% from a year earlier, the key metric to watch is a smaller one. The profit Carvana makes on each vehicle actually fell over the same period. At 28.9 times earnings, against 21.5 for the S&P 500, investors are likely paying for profit that grows. So why is Carvana earning less on each car as it sells more? Why Is Carvana Earning Less On Each Car? The decline comes from a mix of tough year-over-year comparisons and a choice Carvana made. During the second quarter of 2026, adjusted gross profit on the vehicle itself fell $105 a car. Management said this drop happened mainly because a tariff-related benefit had added about $100 a car a year earlier. A steeper drop occurred outside the vehicle sale itself. What Carvana earns on each car apart from the vehicle itself fell $192 a car. Management gave two main reasons for this gap: benchmark rates rose, and Carvana chose to give customers lower interest rates. The company said it had passed more than 100 basis points of rate, or more than one percentage point, back to buyers. Costs and supply worked against the company as well. Management said higher fuel prices raised operations expenses. At the same time, inventory had grown more slowly than sales for several months. Executives noted that fewer cars to choose from means fewer shoppers buy. All else equal, management added, this dynamic results in lower sales or lower profit. Carvana Has Lost Little Profitability So Far Based on the second quarter's sales volume, every $100 of profit per car is worth roughly $20 million a quarter. On that scale, the per-car declines remain small relative to overall operating income. That total hit a company record of $680 million in the quarter. Carvana's operating margin tells a similar story. Over the past twelve months, it came in at 8.9%, against 9.2% a year earlier. This represents a mild slip for a metric that stood at a loss of 7.1% three years ago. Analysts still remain focused on the trend. During its July 29, 2026 call, Carvana faced questions about three straight quarters of lower EBITDA per car, a common measure of operating profit. Adjusted EBITDA reached $769 million in the second quarter, establishing a pace of more than $3 billion a year. Yet management guided the full year to a range of $2.7 billion to $3.0 billion. And analysts asked whether that guidance would imply a step down in future performance. Where Is Carvana Making Up Lower Profit Per Car? The company is offsetting the per-car decline through overhead and higher overall volume. Selling and administrative cost per car fell $157 from a year earlier, an improvement management tied to the growth in cars sold. And even with less profit generated on each individual vehicle, total net income rose $205 million to $513 million. This growth occurred within a shrinking broader market. Management said the industry was down from a year earlier. Despite this headwind, Jefferies noted on September 29, 2026 that website data showed Carvana's sales growth accelerating to about 40% in recent weeks. What Does Carvana's Share Price Likely Assume? With the stock trading at an earnings premium to the S&P 500, its valuation likely assumes that profit keeps climbing. This expectation persists even after a weak year for the stock. Carvana stock lost 14.7% over the past twelve months, while the S&P 500 returned 17.0%. The shares have also fallen hard when broader markets were shaken. During last year's tariff shock, the stock dropped 42%, against 19% for the index. Profit per car deserves attention, but it does not warrant immediate alarm. The slip in profit per car is small against Carvana's total profit, and part of it came from Carvana's choice to give buyers lower interest rates. Investors should look to the upcoming third-quarter earnings report for the next signal. Management guided to more cars sold in that quarter than in the second. If adjusted EBITDA lands below the second quarter's $769 million on a higher volume of cars, it would show Carvana's profit per car still falling. Does This Mean You Should Act On CVNA? Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose. There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

- CarMax surged 5% after posting $1.16 EPS on double-digit unit sales growth, with management signaling a return to share buybacks this quarter. - Carvana rose 3% and Lithia Motors gained under 1%, suggesting CarMax's quarter reflects a company-specific win rather than a broad industry recovery. - The biggest 401k decisions tend to get made once and never revisited: when to roll it over, what to hold inside it, and when to start taking money out. That is exactly what the report: 401k & IRA Tips and Answers was created to address, and it is free today. Read more here. (Sponsor) CarMax (NYSE:KMX) stock is up 6% to $59.75 early in the session after the used-car retailer posted stronger fiscal 2027 second-quarter earnings and indicated a return to share buybacks. The report offers a fresh read on whether CarMax's sharper pricing is winning shoppers back, and rival auto retailers are edging higher in response. Online rival Carvana (NYSE:CVNA) stock is up 3% to $62.10, tracking CarMax's direction. Lithia Motors (NYSE:LAD) stock is up 0.8% to $305.40, a more muted response from a franchised dealer that also sells new cars. AutoNation (NYSE:AN) gives the group a further point of comparison. Sector-wide buying looks tame by comparison, with the SPDR S&P Retail ETF (NYSEARCA:XRT) up just 0.4%. Over at the index level, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.2%. Because the retail fund is modified equal-weighted across its holdings, a sharp jump in CarMax stock alone barely nudges it, which fits how the ETF is built. CarMax posted net earnings per diluted share of $1.16 for the quarter, a big step up from a much smaller figure a year earlier. Beyond earnings, CarMax's total net revenues rose sharply and its combined retail and wholesale used vehicle unit sales grew by double digits. At established locations, CarMax's comparable store used unit sales also rose. ------ For many Americans, funding a 401(k) only leads to more retirement questions. Should you roll your 401k into an IRA, and when? What's the tax impact if the rollover check gets made out to the wrong name? When do required withdrawals begin, and how much do you have to take? Fisher Investments put the answers in one place. 401k & IRA Tips and Answers is free, and it covers rollovers, contribution limits, required withdrawals, and what actually belongs inside the account once the balance gets serious. Read More Here › ------ Management said pricing actions aimed at a better sales trend drove that volume, and gross profit per retail used unit fell as a result. The auto finance arm also grew its income, helped by a lower provision for loan losses and a gain on the sale of auto loans. CarMax stated it intends to resume share repurchases at a modest level in the current fiscal quarter, after buying back no stock in the quarter just reported. For supporters, the quarter shows CarMax's pricing actions working, with unit volumes and revenue climbing after a long stretch of soft demand, and CarMax's rebounding volume gives the company early proof that sharper sticker prices can pull shoppers back into CarMax stores. Such pricing could also help CarMax compete more directly with online sellers such as Carvana. Skeptics see a costlier trade, since CarMax won those units by giving up margin on each car. Those items sit outside store economics. Part of the earnings increase also came from a lower loan loss provision and a one-time gain on selling auto loans, and they make the profit recovery harder to judge. The buyback restart may reveal the most about how management views its own leverage, since the company sat out repurchases entirely last quarter, and resuming at a modest pace suggests growing comfort with the balance sheet, though the scale remains unspecified. Carvana and Lithia Motors sell into the same used-vehicle demand as CarMax, which makes their direction a useful test of the story. Sustained gains in Carvana and Lithia Motors shares would point to an industry recovery, while a decline in those stocks would mark the quarter as a CarMax-specific result. Initial price action leans company-specific, as the smaller gains in Carvana and Lithia Motors shares lag the jump in CarMax stock. AutoNation offers a franchised-dealer read on the same demand. That gap is the clearest early signal of how the market is reading the quarter. CarMax will host a virtual strategic update on November 3, where the company intends to detail its growth plan, key initiatives and targets. The company made separate moves. It named an executive to a newly created chief digital and customer officer role and promoted an internal leader to run a centralized strategy, data science and pricing function, with both reporting to CarMax's chief executive. Investors may want to watch for detail on buyback pace and retail margin plans at that event. Because part of the earnings lift came from finance items, shareholders should keep their positions moderate until store margins show steadier footing. Follow-through in Carvana and Lithia Motors shares could also show whether demand gains extend across the industry. (sponsor) 401(k)s are powerful retirement tools. But even savvy savers can make mistakes that quietly cost you money for decades. Choosing the wrong fund, ignoring small fees nobody adds up, rollover steps done in the wrong order, the list goes on. These sort of mistakes is exactly what 401k & IRA Tips and Answers was created to help prevent. 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- Interested in CarMax, Inc.? Here are five stocks we like better. - Strong Q2 performance: CarMax's total sales rose 19% to $7.9 billion, while used-vehicle comparable sales increased 13% and diluted EPS jumped 81% to $1.16. - Improving efficiency and product margins: SG&A expense per unit fell 9%, and higher-margin protection products helped lift other gross profit 33%, though used-vehicle profit per unit declined and is expected to remain lower year over year in the next two quarters. - Auto finance and capital returns: CarMax Auto Finance income rose 32%, supported by lower loan-loss provisions, while the company plans to resume modest share repurchases in Q3 and expand Tier 2 lending despite lower overall financing penetration. - This Single Factor Is Holding Back Carvana's Disruptive Edge CarMax (NYSE:KMX) reported fiscal 2027 second-quarter results marked by higher vehicle sales, expanded earnings and improving operating leverage, as the used-car retailer pointed to early benefits from its "Shift into GEAR" strategy. President and CEO Keith Barr said used-vehicle comparable sales increased 13% during the quarter, while total used and wholesale vehicle units rose 15%. Diluted earnings per share increased 81% from a year earlier to $1.16. → 5 Scary-Good Stocks With Strong October Catalysts and Breakout Potential - CarMax In Reverse? Why You Should Buy Now Before the Big Catalysts Emerge "Our strong second quarter results reflect solid execution and the initial benefits we are seeing as we deliver on the strategy," Barr said. The company's strategy centers on four priorities: improving its vehicle offering and pricing, simplifying the customer experience, adding value through products and financing, and operating more efficiently. Total sales rose 19% year over year to $7.9 billion, according to Executive Vice President and CFO Enrique Mayor-Mora. CarMax sold approximately 388,000 retail and wholesale vehicles during the quarter, up 15% from the prior-year period. → Akamai's Anthropic Deal Puts $5.5 Billion Behind Its Edge AI Pivot - Avis, CarMax, and Carvana: 3 Car Stocks Sharply Diverge Retail used-unit comparable sales climbed 13%, and total used-unit sales rose 14%. Mayor-Mora attributed the retail performance primarily to more competitive pricing, cost-of-sales efficiencies and improved pricing capabilities. Average retail selling price increased $1,630 year over year to $27,623. Wholesale unit sales rose 16%, while the average wholesale selling price increased $145 to $8,036. CarMax acquired roughly 310,000 vehicles during the quarter, up 6%. The company purchased about 262,000 vehicles directly from consumers, roughly flat from the prior year, and sourced approximately 48,000 vehicles from dealers through its Edmunds sales team, up 54%. → 2 Cybersecurity Stocks Breaking Out as AI Continues to Be a Tailwind Management also cited increased Federal Trade Commission regulatory focus on transparent advertised vehicle pricing as a tailwind. Mayor-Mora said the company estimated that roughly half of its comparable-sales performance came from actions it directly controlled, such as pricing, cost efficiencies and customer-experience improvements, while the other half reflected the impact of FTC enforcement. CarMax has historically emphasized no-haggle and transparent pricing. Barr said the share of its vehicles rated as "great deals" on Cars.com more than doubled compared with the same quarter a year earlier. Total gross profit increased 11% to $799 million. Used retail gross profit rose 8% to $479 million, driven by higher unit volume, though profit per used unit declined $111 year over year to $2,105. The company said it is managing gross profit per unit, or GPU, more dynamically as it uses reconditioning efficiencies to support lower customer prices. Management now expects fiscal 2027 retail margins to decline by less than the previously projected $200 per retail vehicle versus fiscal 2026. However, executives said retail GPU is expected to be lower year over year in both the third and fourth quarters. Wholesale vehicle gross profit was flat at $138 million, as higher volume was offset by a $135 decline in wholesale GPU to $858. Other gross profit rose 33%, or $46 million, to $183 million. Extended Protection Plan margin dollars increased $27 million, aided by higher unit volume and a $46 per-unit increase in margins. CarMax said its redesigned protection products, including a wheel, tire and dent offering, have helped improve results. The company maintained its expectation for approximately $35 per unit of incremental EPP margin for the full fiscal year. Second-quarter SG&A expenses increased 4.6% to $629 million, but SG&A expense per total unit declined $157, or 9%, to $1,621. The company said it remains on track to achieve $200 million in identified savings at its fiscal 2027 exit rate. It also expects approximately $6 million in severance expense during the third quarter from additional corporate cost-streamlining actions. CarMax Auto Finance, or CAF, generated $136 million in income, up 32% from a year earlier. The increase was driven in part by a $29 million decline in the loan-loss provision, a $17 million gain on sale and a $6 million increase in servicing fees, according to Executive Vice President of Auto Finance Jon Daniels. CAF originated $2.3 billion during the quarter and had sales penetration of 40.9%, compared with 42.6% a year earlier. The weighted average contract rate for new customers was 11.8%, up 60 basis points. The company continued to expand its lending presence in the Tier 2 credit segment. CAF financed 22% of Tier 2 volume during the quarter, compared with 10% a year earlier, and Daniels said observed credit performance in that segment remained in line with the company's expectations. Despite the Tier 2 growth, overall CAF penetration declined because of lower Tier 1 penetration. Daniels said higher funding costs led CAF to raise Tier 1 rates, where customers have more financing alternatives. CarMax expects CAF income for fiscal 2027 to be slightly below fiscal 2026 levels while it plans to originate nearly $1 billion in Tier 2 loans by year-end. Following the quarter's performance and its outlook for the remainder of the year, CarMax said it plans to resume share repurchases at a modest pace in the third quarter. The company had $1.31 billion remaining under its repurchase authorization at quarter-end. CarMax also announced leadership additions intended to support its strategy. Elizabeth Dirgins will join the company effective Oct. 5 as executive vice president and chief digital and customer officer, a newly created position overseeing marketing, product and Edmunds. Jeff Campbell joined the senior leadership team in August as senior vice president of strategy, leading a centralized function for strategy, data science, artificial intelligence and pricing. The company plans to provide further details on its strategic initiatives and milestones during a virtual strategic update scheduled for Nov. 3. CarMax, Inc is a specialty retailer of used vehicles and one of the largest automotive retailers in the United States. The company sells a broad selection of used cars, trucks and sport utility vehicles through its retail locations and online platform. CarMax also purchases vehicles from consumers and other sources, providing customers with a streamlined alternative to traditional private-party sales. In addition to retail sales, CarMax operates wholesale vehicle auctions for vehicles that do not meet its retail standards or business requirements. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What CarMax (KMX) Said on Its Q2 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

It has been about a month since the last earnings report for Etsy (ETSY). Shares have lost about 0.3% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Etsy due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Etsy, Inc. before we dive into how investors and analysts have reacted as of late. Etsy’s second-quarter 2026 earnings of $1.34 per share beat the Zacks Consensus Estimate by 14.53%. The company reported 98 cents per share from continuing operations. Strength in gross merchandise sales, advertising and operating leverage supported the earnings outperformance.Revenues increased 6.2% year over year to $668 million, surpassing the consensus estimate by 2.87%. On an Etsy marketplace standalone basis, revenues increased 9.3% year over year. Marketplace revenues were $456.1 million, accounting for 68.2% of total revenues, up 4.8% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, marketplace revenues increased 8.4% year over year.Second-quarter Etsy marketplace GMS rose 7.5% year over year to $2.6 billion. On a continuing operations basis, GMS increased 1% year over year, marking the third consecutive quarter of growth for the Etsy marketplace.Services revenues were $212.2 million, accounting for 31.8% of total revenues, up 9.3% year over year on a continuing operations basis. On an Etsy marketplace standalone basis, services revenues rose 11.2% year over year.Etsy Ads was the primary driver of take-rate expansion, aided by machine learning improvements that enhanced ad relevance and seller budget pacing. Offsite Ads also contributed as paid marketing shifted toward higher-monetizing channels. Trailing 12-month active buyers totaled 87 million, down 0.4% year over year but up 0.4% sequentially. Etsy added roughly 350,000 active buyers from the first quarter. Gross buyer additions increased 7.1% year over year to 12.1 million.New buyers rose 4.4% to 5 million, while reactivated buyers grew 9% to 7.1 million. Repeat and habitual buyer cohorts recorded their first sequential gains since 2023, although both remained below year-ago levels. Second-quarter adjusted EBITDA rose 14.7% year over year on a continuing operations basis to $195.4 million. The adjusted EBITDA margin expanded 210 basis points to 29.2%, as nearly half of incremental revenues flowed through to adjusted EBITDA.Second-quarter operating expenses declined 2.1% to $358.8 million. Marketing expenses were $190.9 million, while product development costs totaled $100.9 million. General and administrative expenses fell to $66.9 million, benefiting from headcount discipline, lower professional services spending and a reversal of non-income tax expense. As of June 30, 2026, cash and cash equivalents totaled $901.3 million, down sequentially from $1.21 billion as of March 31, 2026.Total liquidity, including short- and long-term investments, was approximately $1.28 billion, a sequential decline from approximately $1.58 billion as of March 31, 2026. The company repurchased 3.9 million shares for $250 million during the quarter. Etsy also authorized a new $2 billion repurchase program. The completed Depop sale is expected to bring approximately $1.4 billion in cash during the third quarter, supporting accelerated buyback activity.Net cash provided by continuing operations totaled $165.9 million in the reported quarter. Free cash flow from continuing operations was $158.1 million in the second quarter of 2026; this represented approximately 81% of adjusted EBITDA. For the third quarter of 2026, management expects GMS between $2.53 billion and $2.58 billion, representing year-over-year growth of 4% to 6%. The take rate is projected at approximately 26%, with an adjusted EBITDA margin of 28% to 30%.For 2026, Etsy now anticipates mid-single-digit GMS growth, up from its previous low-single-digit growth outlook. Management raised the adjusted EBITDA margin forecast to 29% to 30% from 28% to 30%. In the past month, investors have witnessed a upward trend in fresh estimates. Currently, Etsy has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Etsy has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Etsy belongs to the Zacks Internet - Commerce industry. Another stock from the same industry, Carvana (CVNA), has gained 7.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago. Carvana is expected to post earnings of $0.49 per share for the current quarter, representing a year-over-year change of +133.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.9%. Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Etsy, Inc. (ETSY) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Wayfair (W). Shares have lost about 12.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Wayfair due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Wayfair Inc. before we dive into how investors and analysts have reacted as of late. Wayfair reported second-quarter 2026 earnings of 95 cents per share, which beat the Zacks Consensus Estimate of 94 cents. Net revenues for the second quarter of 2026 rose 7.5% year over year to $3.52 billion, surpassing the Zacks Consensus Estimate of $3.47 billion by 1.41%.The outperformance was driven by accelerating U.S. demand, sustained market share gains and outsized growth from the company's specialty and luxury brands, including Perigold.Last Twelve Months (LTM) net revenues per active customer increased 4.2% year over year to $596 as of June 30, 2026. The active customer base rose 3.3% year over year to 21.7 million. Net revenues in the United States (88.8% of total net revenues) increased 8.7% year over year to $3.13 billion, the strongest growth the segment has posted in the post-pandemic period. International net revenues (11.2% of total net revenues) declined 1.3% year over year to $394 million. On a constant currency basis, international revenues declined 2% year over year.Orders per customer (LTM orders delivered divided by active customers) were 1.89 for the quarter, up from 1.86 in the second quarter of 2025. The average order value expanded from $328 to $332 year over year.Total orders delivered in the second quarter were 10.6 million, up 6% year over year. Repeat customers placed 8.5 million orders (80.2% of total orders delivered), representing an increase of 4.9% year over year compared with 80.7% of total orders in the second quarter of 2025. Mobile orders accounted for 64.1% of total orders delivered, up from 62.9% in the second quarter of 2025. Wayfair's second-quarter gross profit was $1.05 billion, representing a gross margin of 30%, which contracted 10 basis points year over year. Non-GAAP Contribution Profit was $539 million, or 15.3% of net revenues, representing a contribution margin improvement of 10 basis points year over year. Adjusted EBITDA was $242 million in the reported quarter, up 18% year over year, representing an adjusted EBITDA margin of 6.9%, which expanded 60 basis points year over year and marked the company's best margin performance since 2021.Customer service and merchant fees represented 3.6% of net revenues. Advertising expenses represented 11.1% of net revenues, an improvement of roughly 30 basis points from the second quarter of 2025. Selling, operations, technology and general and administrative (SOT G&A) expenses were $361 million for the quarter, delivering 100 basis points of leverage against the prior-year period.Wayfair reported a GAAP net loss of $1 million for the second quarter against GAAP net income of $15 million in the second quarter of 2025. GAAP loss per share was 1 cent versus earnings of 11 cents a year earlier. Second-quarter results included a $59 million loss on debt extinguishment tied to the repurchase of 2028 convertible notes. As of June 30, 2026, cash and cash equivalents were $1.07 billion, and short-term investments were $78 million, bringing the combined total to $1.14 billion compared with $1.06 billion as of March 31, 2026. Total liquidity reached $1.6 billion, including availability under the revolving credit facility, up from $1.5 billion as of March 31, 2026.Long-term debt as of June 30, 2026, was $2.8 billion compared with $2.93 billion as of March 31, 2026, reflecting the redemption of the remaining 2028 convertible notes, funded in part through the issuance of a $400 million high-yield note.Net cash provided by operating activities was $360 million in the second quarter, up from $273 million in the second quarter of 2025. Non-GAAP free cash flow was $301 million, up more than 30% year over year and the strongest quarterly figure since the second quarter of 2020. Capital expenditures totaled $59 million for the quarter. For the third quarter of 2026, Wayfair expects revenues to grow in the high single digits year over year.The company expects gross margin in the range of 29.5% to 30.5% of net revenues, with results likely landing toward the lower end as investment in the customer experience, including the loyalty program, continues.Customer service and merchant fees are expected to be just below 4% of net revenues, while advertising is expected in the 10.5% to 11.5% range, also toward the low end. Together, this should yield a contribution margin in line with or slightly better than the second quarter. SOT G&A is expected to hold in the $360 million to $370 million range.Adjusted EBITDA margin is guided in the 6% to 7% range for the third quarter. Since the earnings release, investors have witnessed a upward trend in estimates revision. The consensus estimate has shifted 71.26% due to these changes. Currently, Wayfair has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wayfair has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Wayfair is part of the Zacks Internet - Commerce industry. Over the past month, Carvana (CVNA), a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Carvana reported revenues of $7.38 billion in the last reported quarter, representing a year-over-year change of +52.4%. EPS of $0.42 for the same period compares with $0.26 a year ago. For the current quarter, Carvana is expected to post earnings of $0.49 per share, indicating a change of +133.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.9% over the last 30 days. Carvana has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wayfair Inc. (W) : Free Stock Analysis Report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Carvana (CVNA). Shares have added about 20.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Carvana due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Carvana Co. before we dive into how investors and analysts have reacted as of late. Carvana reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing. Retail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052. Total gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million. However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively. Operating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed. Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose. Inventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location. The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027. Cash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million. For the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035. In the past month, investors have witnessed a flat trend in estimates revision. The consensus estimate has shifted 7.89% due to these changes. At this time, Carvana has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the fifth quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Carvana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carvana Co. (CVNA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Carvana stock has delivered a very large 3 year return, yet current valuation checks lean expensive and raise questions about how much of that recovery is already priced in. Carvana has returned about 7.7x over the past 3 years, which sets a high bar for any further upside case grounded in fundamentals. Recent headlines about record operating metrics and a large debt refinancing can support confidence in the business. At the same time, the federal investigation involving minority investor Mark Walter introduces an external risk that may affect sentiment and liquidity around the stock. Across Simply Wall St’s broader checks, Carvana scores 0 out of 6 on value, which points to a company that does not screen as a clear bargain on the usual valuation filters. The issue now is whether Carvana's current share price still offers enough compensation for the risks after such a strong 3 year run. Carvana delivered 4.0% returns over the last year. See how this stacks up to the rest of the Specialty Retail industry. The P/E ratio is a useful cross check for Carvana because the market is currently valuing the business on reported earnings rather than only on sales or assets. Carvana trades on a P/E of 32.3x, compared with an industry average for Specialty Retail of 19.5x and a peer average of 18.8x. That is a sizeable premium to both the broader sector and closer listed peers. The fair P/E that falls out of Simply Wall St’s model for Carvana is 27.0x. This suggests the current 32.3x is above what might be expected after adjusting for the company’s growth profile, margins, risk and size. Despite the recent drop linked to the investigation into minority investor Mark Walter, the market is still putting a relatively full earnings multiple on Carvana stock compared with these benchmarks. On this P/E test, Carvana stock screens as overvalued relative to what the tailored fair multiple and sector averages suggest. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Carvana pick up where the P/E puzzle leaves off by spelling out what would need to happen with Carvana's future growth, margins and earnings for the stock to be worth materially more or less than it is today. Rather than stopping at a single output from a ratio or model, they unpack the future that number assumes so you can track over time whether that path is still playing out. These Narratives sit on Simply Wall St's Community page. Community views on Carvana are sharply split, with one side focused on digital scale and the other on balance sheet and accounting risk. Bull case: 15% undervalued Read the full Bull Case to see why Carvana could be undervalued Bear case: 15% undervalued Read the full Bear Case to see why Carvana could be overvalued Do you think there's more to the story for Carvana? Head over to our Community to see what others are saying! Carvana now trades on a richer P/E multiple than its sector and peer group, so the market is already pricing in a lot of optimism around earnings. With broader valuation checks screening weak, the burden of proof sits with future execution on margins and balance sheet discipline rather than simple multiple expansion. For potential investors, the key question is whether Carvana can deliver the level of sustainable profitability that would make this premium look reasonable instead of stretched. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CVNA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]