Carvana Co. (CVNA) reported on Wednesday that its first-quarter earnings far exceeded financial analysts’ expectations, sending its stock up more than $33% in after-market trading. The used-car retailer reported a profit of $0.23 per share for the quarter, well above analysts’ average forecast of a loss of $0.67 per share. The company’s revenue also beat forecasts, reporting $3.06 billion versus the $2.68 billion expected.
The company reported a record 7.7% adjusted EBITDA margin, which it claimed was “higher than any other publicly traded U.S. auto retailer in the first quarter.”
Looking ahead, Carvana is optimistic about its ability to increase retail units sold and improve adjusted EBITDA year-over-year for fiscal 2024. This confidence is based on strong first-quarter results and positive guidance for the second quarter. Furthermore, the company has decided to stop providing full-year 2024 guidance and will instead focus on sharing quarterly financial results going forward.
“In the first quarter, we delivered the best performance in the company’s history, which confirms our long-standing belief that Carvana’s online sales model can drive best-in-class profitability while delivering a best-in-class customer experience,” said Ernie Garcia, founder and CEO of Carvana.
“With these strong results, the potential for significant improvement in underlying margins, and a national infrastructure capable of supporting many times our current volume, we are more confident than ever about our potential to become the largest and most profitable auto retailer, buying and selling millions of vehicles,” said Ernie Garcia, founder and CEO of Carvana.
Source: Investing
