Used car vending machine operator Carvana Co. (NYSE:CVNA) flew nearly 40% higher in Thursday’s pre-market trades following a surprisingly bullish first-quarter result and upbeat sales forecast.
Carvana brokered 91,878 unit sales in the quarter, a 16% year-over-year increase, bringing in total revenues of $3.06 billion, a 17% increase.
Net income margins improved to 1.6%, up from a net loss margin of 11% the previous year, while adjusted EBITDA margins Increased to 7.7% from a loss in the previous first quarter.
“In the first quarter, we delivered our best financial results in company history; for that reason, it is a quarter worthy of reflection,” went the letter to shareholders.
Keeping up with the hyperbolic language, management called Carvana “a north star of delivering exceptional, ever-improving customer experiences”.
Continuing: “We are a company full of people with eyes locked on the target who don’t know how to quit. We are a company that has proven our ability to move quickly over a sustained period of time. We are a company that has demonstrated our ability to adapt to challenges.
The optimism wasn’t lost on the market, with Carvana’s share price soaring 37.5% to a two-year high of $119.50.
It marks a rather stunning 1,000%-plus recovery in Carvana’s shares over the past 12 months.
After soaring to dizzying heights of more than $350 per share at the peak of the COVID-19 pandemic due to its contactless means of purchasing a car, Caravan’s stocks collapsed to less than $4 by the time 2023 rolled around.