In an aerial view, a sign is placed outside a Carvana car vending machine on July 19, 2023 in Daly City, California.
Justin Sullivan | Getty Images
Actions of Carvana The company's shares rose as much as 14% in after-hours trading on Wednesday as it beat Wall Street expectations for the second quarter and revealed expectations for record adjusted earnings of at least $1 billion by 2024.
Here's how the company performed in the second quarter, compared to average estimates compiled by LSEG:
- Earnings per share: 14 cents versus an expected loss of 7 cents
- Revenue: $3.41 billion versus the expected $3.24 billion
The gains were driven by Carvana's retail vehicle sales of more than 101,400 units during the quarter, up 32.5% compared to the second quarter of 2023.
The company's gross profit per unit, or GPU, which is closely watched by investors, was $7,049, up $529 from a year earlier.
Carvana expects 2024 to be a record year for the used-car retailer following results including a projection of adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of between $1 billion and $1.2 billion for the full year 2024, up from $339 million in 2023.
Carvana's guidance indicates a strong second half of the year is expected. The company said it expects a sequential increase in retail vehicle sales during the third quarter compared to the previous three months.
“Looking ahead, our business still has a lot of untapped potential and our team remains unreasonably underperforming. We see opportunities to significantly improve from here over time,” Carvana CEO and co-founder Ernie Garcia said Wednesday in a joint letter to shareholders with CFO Mark Jenkins.
The company's previous guidance for the year included a “sequential increase in adjusted EBITDA” for the second half of the year, but did not provide a dollar amount.
If Carvana meets its 2024 earnings target, it would mark the company's third annual EDBITDA gain, including 2023's record of $339 million.
Carvana's second-quarter net income was $48 million and net profit margin was 1.4%. Adjusted EBITDA was $355 million and adjusted EBITDA margin was 10.4%, both company records.
Second-quarter results continue to represent a turnaround for Carvana following Wall Street fears that the company could file for bankruptcy in early 2022.
