- Carvana raised its 2024 earnings guidance, saying it would be "significantly above the high end" of its previous target.
- The online used-car retailer easily beat Wall Street's estimates for earnings and revenue.
Carvana on Wednesday raised its 2024 earnings guidance after the online used-car retailer significantly topped Wall Street's third-quarter expectations.
Here's how the company performed in the third quarter, compared with average estimates compiled by LSEG:
- Earnings per share: 64 cents vs. 25 cents expected
- Revenue: $3.65 billion vs. $3.45 billion expected
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The company's stock rose roughly 20% in after-hours trading Wednesday.
For 2024 guidance, Carvana said its adjusted earnings before interest, taxes, depreciation and amortization would be "significantly above the high end" of its previous target of $1 billion to $1.2 billion. The company reported $339 million in adjusted EBITDA last year.
Carvana's new guidance signals expectations for a strong end of the year. The company said it expects a sequential increase in retail vehicle sales during the fourth quarter compared with the prior three months, which totaled 108,651 vehicles.
Money Report
For the third quarter, the company's net income was $148 million, down from $741 million a year earlier that was inflated by a gain on debt reduction. Adjusted EBITDA was $429 million and adjusted EBITDA margin was 11.7%, both topping company records achieved during the second quarter.
The company's third-quarter 2023 results included adjusted EBITDA of $148 million and revenue of $2.77 billion.
Shares of Carvana are up roughly 300% this year as the company restructured operations and cut costs following Wall Street concerns of bankruptcy for the company in late 2022.
Carvana stock closed Wednesday at $207.31 per share, down less than 1%. Shares hit a new 52-week high earlier in the day of $213.98 per share.
