Carvana Co (NYSE:CVNA) saw its shares jump double digits after reporting better-than-expected first-quarter sales.
The online used car dealer reported an earnings loss of US$0.53 per share on revenue of US$360mln compared with a loss of US$0.28 per share on revenue of US$159mln in the previous year’s first quarter.
The Phoenix-based company reported an adjusted earnings loss of US$0.40, missing Wall Street estimates of US$0.39 loss, but surpassing sales estimates of US$354mln by US$6mln.
Shares of the car company were up more than 12% to US$27.80 in Thursday morning trading.
READ: Carvana shares soar after acquisition of Car360, a Mark Cuban-backed start-up
Several analysts have upgraded the tech start-up’s shares following the quarterly report.
Deutsche Bank analysts raised the shares to a Buy from a Hold with a price target of US$33.
Citigroup set a Buy rating and a price target of US$23.
B. Riley analysts double-upgraded shares to a Buy from a Sell, increasing its target price to US$38 from US$20.
However, the upgrade was not unanimous with analysts from BMO Capital Markets reaffirming its Hold rating with a price target of US$23.
As of March 2018, the e-commerce platform listed approximately 11,400 vehicles on its website.
“We have opened 18 new markets already in 2018 and are on track to serve 57% of the U.S. population by the end of the year. Consumers are responding to the new way to buy a car, and we expect to deliver our fifth straight year of triple digit growth in 2018,” said CEO Ernie Garcia in a statement.
Carvana recently bought Car360, an interactive platform that lets users see a 360-view of cars in augmented reality. The company acquire the Mark Cuban-backed start-up for US$22mln, with US$6.7mln in cash and the remaining US$15.2mln in shares, based on the aggregate value of its shares over the last two months.