Home News Carvana Stock Is Jumping After a Surprise Profit and Upbeat Outlook

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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