Carvana Co. (CVNA) saw its shares plummet 8.67% in after-hours trading on Wednesday, despite reporting first-quarter earnings that significantly surpassed analyst expectations. The online used car retailer posted earnings per share of $1.51, more than double the $0.57 anticipated by analysts polled by FactSet.

Revenue for the quarter ended March 31 also exceeded forecasts, coming in at $4.23 billion compared to the expected $4 billion. This represents a substantial increase from $3.06 billion in the same period last year. However, the better-than-expected results were not enough to prevent the stock's sharp decline.

The after-hours sell-off suggests investors may be concerned about other factors beyond the headline numbers. While Carvana demonstrated strong growth and profitability improvements, the market's reaction indicates potential worries about sustainability, competitive pressures, or other underlying issues not immediately apparent in the earnings report. As the used car market continues to evolve, investors appear to be exercising caution despite Carvana's impressive quarterly performance.