It has been about a month since the last earnings report for Carvana (CVNA). Shares have added about 3.1% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Carvana due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Carvana Q3 Earnings Beat Estimates

Carvana reported third-quarter earnings of 64 cents per share, which breezed past the Zacks Consensus Estimate and the year-ago quarter earnings of 23 cents. Revenues of $3.66 billion beat the Zacks Consensus Estimate of $3.47 billion and rose 32% year over year.

Key Highlights

Total gross profit amounted to $807 million, up 67.4% year over year. Total gross profit per unit (GPU) was $7,427, rising from $5,952 in the year-ago period and exceeding our estimate of $6,880. SG&A expenses were $469 million, up 8.3% year over year. Carvana achieved an adjusted EBITDA of $429 million for the third quarter of 2024. Adjusted EBITDA margin in the quarter under review was 11.7%, up from 5.3% in the third quarter of 2023.

Segmental Performance

Retail vehicle sales totaled $2.54 billion in the quarter, rising 30.5% year over year and topping our estimate of $2.52 billion on the back of higher-than-expected sales volume. During the reported quarter, the number of vehicles sold to retail customers rose 34.2% to 108,651 from the prior-year period and exceeded our estimate of 105,518 units. Gross profit amounted to $380 million, up 74.3% year over year. Gross profit per unit came in at $3,497, significantly up from $2,692 generated in the year-ago period as well as ahead of our expectations of $3,011.

In the third quarter, wholesale vehicle sales totaled $786 million, up 28.9% year over year. Sales breezed past our estimate of $475 million amid higher-than-expected unit sales. During the reported quarter, the number of vehicles sold to wholesale customers soared 38.2% to 56,487 from the prior-year period and exceeded our estimate of 49,214 units. Gross profit came in at $101 million, rocketing 102% from the corresponding quarter of 2023. GPU came in at $930, up 50.5% year over year and above our estimate of $633.

In the period under consideration, other sales and revenues rose 52.3% year over year to $326 million and beat our forecast of $214 million. Gross profit was $326 million, up 52.3% year over year. GPU came in at $3,000, up 13.6% year over year. However, it missed our estimate of $3,235.