#Carvana #Stock #Rockets #Profit #Sales #Jump #Rising #Demand #Cars
Key takeaways
- Carvana’s quarterly earnings well beat analyst estimates and boosted its full-year outlook, helped by increased demand for used cars.
- Carvana’s stock price rose more than 20% on Thursday following positive earnings news.
- The online used car retailer posted record numbers for adjusted EBITDA, adjusted EBITDA margin, and GAAP operating income.
- Carvana sees full-year adjusted EBITDA as “significantly higher” than the high end of its previous estimate.
Surging demand for used cars helped online used car retailer Carvana (CVNA) shatter earnings and sales estimates and boost its full-year outlook. The company’s shares rose on Thursday.
Carvana late Wednesday reported third-quarter earnings per share (EPS) of 64 cents, nearly triple the estimates of analysts surveyed by Visible Alpha. Revenue jumped about 32% to $3.66 billion, also exceeding expectations. Retail units rose 34% to 108,651.
Carvana said it set records for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), EBITDA margin, and GAAP operating income.
Carvana reported adjusted EBITDA of $429 million and adjusted EBITDA margin of 11.7%, demonstrating improved profitability. The company also generated $337 million in GAAP operating income, representing its highest operating profit.
The quarter brought more “strong customer demand”
“The third quarter saw strong customer demand similar to demand in the first and second quarters,” founder and CEO Ernie Garcia said in a letter to shareholders that detailed the company’s strategy to grow retail units and revenue, increase gross profit per unit, and demonstrate operating leverage.
Carvana expects full-year adjusted EBITDA to be “significantly higher” than the high end of its previous forecast of $1.0 billion to $1.2 billion.
Carvana shares rose to their highest level in nearly three years on Thursday, rising 22% at $253.18 recently.
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#Carvana #Stock #Rockets #Profit #Sales #Jump #Rising #Demand #Cars
