A sign is posted on the outside of a Carvana car vending machine on July 19, 2023 in Daly City, California.
Justin Sullivan | Getty Images
shares Kavanagh The company’s shares soared 14% in after-hours trading on Wednesday after the company’s second-quarter results topped Wall Street expectations and disclosed expectations for 2024 adjusted earnings of at least a record $1 billion.
Here’s how the company performed in the second quarter, compared with the average forecast compiled by London Stock Exchange Group:
- Earnings per share: 14 cents vs expected loss of 7 cents
- income: US$3.41 billion, expected US$3.24 billion
beat by Carvana Retail Vehicle Sales Sales in this quarter exceeded 101,400 units, an increase of 32.5% compared with the second quarter of 2023.
The company’s gross profit per unit of GPU, which is closely watched by investors, was $7,049, an increase of $529 from the same period last year.
Carvana expects 2024 to be a record year for the used car retailer, including forecasting full-year 2024 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.0 billion to $1.2 billion, up from $339 in 2023 It will reach 1 million per year.
Carvana’s guidance showed expectations for strong growth in the second half of the year. The company said it expects retail vehicle sales to continue to grow in the third quarter compared with the previous three months.
“Looking forward, there is still a lot of untapped potential in our business. Our team is still unsound. We see opportunities to significantly improve from here over time,” said Carvana CEO and co-founder. Ernie Garcia said in a joint shareholder letter with Chief Financial Officer Mark Jenkins on Wednesday.
The company’s previous annual guidance included “sequential growth in adjusted EBITDA” in the second half, but did not provide a specific amount.
If Carvana hits its 2024 profit target, it would mark the company’s third annual EDBITDA profit, including a record $339 million in 2023.
Carvana’s second-quarter net profit was US$48 million, with a net profit margin of 1.4%. Adjusted EBITDA was US$355 million, and adjusted EBITDA margin was 10.4%, both company records.
Second-quarter results continued to improve sharply after Wall Street worried Carvana would go bankrupt in early 2022.
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