Shares of Carvana Co. (CVNA) tumbled 7.61% in after-hours trading on Wednesday, despite the company reporting record third-quarter results and providing a strong outlook for the full year. The sharp decline comes as investors appear to be focusing on mixed earnings signals and potential concerns beyond the headline numbers.

For the third quarter, Carvana reported net income of $263 million and revenue of $5.647 billion, significantly surpassing analyst expectations of $5.011 billion. However, the company's earnings per share (EPS) of $1.03 fell short of the $1.26 estimate, potentially contributing to the negative market reaction. Despite the EPS miss, Carvana highlighted its strong performance with a record adjusted EBITDA margin of 11.3% for the quarter.

Looking ahead, Carvana provided an optimistic outlook, stating that it expects full-year adjusted EBITDA to be "at or above the high end of the previously communicated range of $2.0 billion to $2.2 billion." The company also announced plans to expand its annual retail production capacity to over 1.5 million units by the end of 2025. Despite these positive forward-looking statements, investors seem to be approaching the stock with caution, possibly due to concerns about the sustainability of growth or other factors not immediately apparent in the financial results.