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Carvana posts Q2 earnings beat driven by record vehicle sales

Carvana Co. (NYSE:CVNA) shares surged almost 20% as its second quarter results beat Wall Street estimates on the top and bottom lines.

The used car eCommerce platform posted revenue of $4.84 billion, up 42% year-over-year and ahead of estimates of $4.53 billion.

Earnings per share of $1.28 marked a significant improvement from $0.14 in the year-ago quarter and beat estimates of $1.18.

During Q2, Carvana sold a record number of vehicles, about 143,000.

The company said it expects a sequential increase in retail units sold in Q3.

For the full year, Carvana said it expects adjusted EBITDA in the range of $2 billion to $2.2 billion, compared to $1.38 billion for the previous year.

“Our record Q2 results further validate the strength and differentiation of the Carvana model,” Carvana CEO Ernie Garcia said in a statement.

Shares of Carvana added 19.3% at about $398 on Thursday morning.

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