Carvana shares fell about 15% in after-hours trading Wednesday after the auto retailer issued earnings guidance that did not meet some Wall Street expectations. The drop came even as the company reported record results for the second quarter.
According to the company, expected earnings are in a range of $2.7 billion to $3 billion. Investors appeared to focus more on that outlook than on the quarterly performance, sending the stock sharply lower after the market closed.
The market reaction suggests analysts and traders were looking for a stronger forecast from Carvana. While the latest quarter showed record results, the company’s forward guidance became the main issue for investors weighing the stock.
The move highlights how sensitive Carvana shares remain to future earnings targets. In this case, the company’s outlook overshadowed its second-quarter report and led to a steep immediate sell-off.
