Carvana sinks after Q4 earnings: long-term investors eye dip

Carvana (NYSE: CVNA) opened in the red today after reporting $511 million in adjusted EBITDA for its fiscal Q4 – notably below the $536 million that analysts had expected. While the company’s revenue topped estimates, investors were let down by a 100 bps year-on-year decline in margins to 9.1%. However, there’s still reason to believe this post-earnings decline is a minor “speed bump” in what has otherwise been a stellar turnaround story. In fact, down over 25% versus its year-to-date high, Carvana stock now reflects a rare opportunity for long-term investors to load up on a quality name at a deep discount. Why Q4 report doesn’t warrant selling Carvana stock CVNA saw its gross profit per unit (GPU) come in…