Carvana is set to report earnings after the close tomorrow, July 31
Carvana Co (NYSE:CVNA) is ready to step into the earnings confessional after the close tomorrow, July 31. Per Zacks.com, analysts expect Carvana to record a breakeven second-quarter earnings per share on revenue of $3.2 billion.
Looking back at its last eight post-earnings sessions, CVNA tends to move higher. In fact, the equity recorded gains after six of its last eight reports, including 32.1% and 33.8% bounces after its respective February and May earnings calls. This time around, the options pits are pricing in a 26.1% post-earnings swing, regardless of direction, which is lower than the 29.7% move the stock averaged over the last two years.
Ahead of the event, shares of the online used-car retailer is trading 3.3% lower at $123.68. It's easy to spot those post-earnings jumps on the chart, with both representing big bull gaps that have helped Carvana stock add 133.5% in 2024. A comparable move would help the security break above its July 16, more than two-year high of $147.25.
Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the security with a 50-day call/put volume ratio of 1.68 that stands higher than 100% of annual readings. In other words, long calls have never been more popular over the last 12 months.
It's also noting that short interest fell 14% over the last two reporting periods, and the 18.85 million shares sold short represent 17.2% of Carvana stock's total available float. It would take four days at CNVA current daily pace to buy back these bearish bets.