On July 30, Carvana Co. declined 6.77% overnight, trading at $61.83/share. The selloff was triggered by the company's full-year profit guidance falling short of market expectations, despite a solid second-quarter earnings beat.

Carvana reported Q2 revenue of $7.376 billion, significantly exceeding the consensus estimate of $6.907 billion, while EPS of $0.42 topped the $0.36 forecast by 16.67%. Adjusted EBITDA reached $769 million, also above analyst projections. However, the company issued its first-ever annual forecast, projecting adjusted core profit of $2.7 billion to $3.0 billion, with the midpoint below the analyst consensus of $2.97 billion.

The soft guidance stems primarily from reduced supply of newer used vehicles, which has kept wholesale prices elevated and pressured dealer margins industry-wide. Prior to the report, the stock had rallied over 5% intraday as investors positioned for strong results. Additionally, Bank of America had previously cut its price target from $88 to $75, and RBC lowered unit gross profit estimates citing less favorable securitization conditions, amplifying post-earnings selling pressure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)