Carvana (CVNA) First Quarter 2024 Earnings Report | Wilnesh News

shares Karavana Shares of the automaker surged more than 30% in after-hours trading Wednesday after the automaker reported record quarterly results and posted a profit in the first quarter.

Here’s how the company performed in the first quarter, compared with average forecasts compiled by London Stock Exchange Group:

• Earnings per share: 23 cents – it’s unclear whether this is comparable to the expected loss of 74 cents
• income: US$3.06 billion, expected US$2.67 billion

Carvana reported a record first-quarter net profit of $49 million, compared with a loss of $286 million a year earlier.It also releases the best ever Adjusted advance earnings before interest, taxes, depreciation and amortization were $235 million, up from a loss of $24 million in the same period last year.

The company’s gross profit per GPU unit, which is closely watched by investors, was $6,432. Carvana’s adjusted profit margin for the quarter was 7.7%.

“In the first quarter, we delivered the best results in the company’s history, validating our long-held belief that Carvana’s online retail model can drive industry-leading profitability,” said Ernie Garcia III, Carvana CEO and Chairman. while providing an industry-leading customer experience.

The results come after the company underwent a major restructuring over the past two years to focus on profitability rather than growth, after Carvana’s stock lost almost all value in 2022, sparking bankruptcy fears.

The company’s shares have since recovered. Ahead of the company’s first-quarter results, shares were up about 67% year to date. The stock closed up about 5% on Wednesday at $87.09 per share.

in a joint letter Shareholders Wednesday, Garcia and Chief Financial Officer Mark Jenkins said the company is now again focused on growth, but also on profitability.

“We are now focused on the long-term phase of driving profitable growth and pursuing our goal of becoming the largest and most profitable auto retailer and buying and selling millions of vehicles,” the shareholder letter reads.

The company said it expects the annual growth rate of its retail business to increase quarter-on-quarter in the second quarter, and its adjusted profit before interest, tax, depreciation and amortization will also increase from the previous quarter.