Shares in Carvana Co. (NYSE:CVNA) 'motored' 20% after the online used car specialist posted a strong quarterly performance, with adjusted earnings (EBITDA) hitting $429 million, well above analyst expectations of $326.8 million.
Revenue for the quarter rose to $3.66 billion, surpassing the forecast of $3.46 billion. Carvana’s sales volume increased by 34% year-over-year, selling over 108,000 vehicles and bringing retail gross profit per vehicle to a record $3,497.
Arizona-based Carvana credited its improved results to cost-cutting measures and growing sales in the online used-car market.
Lower operating costs per vehicle have driven profitability, boosting the company’s stock by 22%.
With continued momentum, Carvana raised its 2024 earnings outlook, expecting profits above prior projections as long as economic conditions remain stable.
The stock closed a busy after-hours session 20.1% higher at $207.31, valuing the business at $42 billion.