Carvana Stock Plunges 20% on Q4 Miss, Warns of Further Sales Drop
<p><a href='https://financialmodelingprep.com/financial-summary/CVNA'>Carvana Co. (NYSE:CVNA)</a> shares plunged 20% on Friday (recovered today - up 11%) after the company reported its Q4 results, with EPS of ($7.61) missing the Street estimate of ($2.12).</p>
<p>Revenue was $2.84 billion, worse than the Street estimate of $3.07 billion, driven by weakening consumer demand amid rising interest rates and limited vehicle affordability, as well as the company’s intentional reduction in advertising and inventory levels.</p>
<p>The company expects a further decline in revenues, noting a sequential reduction in retail units sold in Q1/23.</p>
<p>Deutsch Bank analysts provided their views on the company following the result, lowering their price target to $10 from $16. The analysts anticipate that there will be a natural period of transition lasting a few years as the company concentrates on adjusting its business and reducing expenses before it can redirect its attention toward increasing revenue.</p>

NYSE:CVNA