:max_bytes(150000):strip_icc()/GettyImages-2150318034-31d7017f22e9434c80a2275973d51e68.jpg "Carvana Stock Is Jumping After a Surprise Profit and Upbeat Outlook")
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Key Takeaways
- Carvana reported a surprise profit and set records for adjusted EBITDA as retail vehicle sales surged.
- The online used car retailer predicted a record-setting year for EBITDA.
- The stock jumped to levels last seen more than two years ago.
Shares of Carvana (CVNA) drove higher after the online used-car retailer posted a surprise profit and gave an upbeat full-year outlook.
Carvana reported second-quarter adjusted earnings per share (EPS) of $0.14. Analysts were anticipating a loss. Revenue rose 15% to $3.41 billion, also more than expected. It set records for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $355 million.
The news sent Carvana shares up 14% in morning trading, earlier touching their highest level in more than two years.
Retail vehicle sales surged 33% to 101,440, the most of any quarter in two years. Wholesale vehicle unit sales were up 8.4% to 50,368.
The company is now predicting 2024 adjusted EBITDA of $1.0 billion to $1.2 billion, an increase of $339 million from last year. Following the report, JP Morgan analysts raised their EBITDA outlook for 2024, 2025, and 2026.
“With just 1% market share, the scale of the opportunity ahead of us is obvious,” CEO Ernie Garcia III and CFO Mark Jenkins wrote in a letter to shareholders.”
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