Carvana to release fourth quarter earnings, analysts expect stock to fall short of expectations - Phoenix Business Journal

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Carvana’s stock has risen more than 100% year-to-date, rebounding from a 98% decline in 2022. phoenix

Investors will be closely watching Carvana this week as the Tempe-based online car retailer is slated to release its fourth quarter earnings report on Feb. 21, amid liquidity concerns and a heavy debt load on its balance sheet.

“While share performance suggests investors are moving past the most draconian bear case , FY23 still looks squishy and we remain sidelined,” Wells Fargo analysts wrote.The investor note indicated Wells Fargo analysts believe the market still underwrites a pullback in volumes for Carvana’s stock at $11 per share, but a"worst case" liquidity crisis appears off the table for now.

Based on 11 analysts' forecasts, the consensus for Carvana’s adjusted earnings in the fourth quarter is a loss of $2.25 per share, according to Zacks Investment Research. that limits shareholders from acquiring a controlling stake in the company and protects its ability to roll over net operating losses to offset future tax liability.

 

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