Online used-car retailer Carvana said its second-quarter results would likely come in ahead of its earlier expectations as cost-reduction measures take hold.
Armando L. Sanchez | Tribune News Service | Getty Imagessurged on Thursday after the company said its second-quarter results would likely come in ahead of its earlier expectations as cost-reduction measures take hold.5 hours ago
Carvana said it now expects to report adjusted earnings before interest, tax, depreciation, and amortization, or EBITDA, of more than $50 million in the second quarter of 2023. Wall Street analysts surveyed by FactSet had expected the company to roughly break even on that basis. Carvana said it also expects its gross profit per unit, or GPU, to be above $6,000 in the second quarter. That would be a new company record and an increase of more than 60% from the second quarter of 2022.Carvana's most recent guidance in May called for aStock chart iconThe company's shares enjoyed a strong run-up during the pandemic as buyers turned to online sources for used cars.
Carvana's stock fell roughly 98% in 2022 but has recovered significant ground in recent months: Through Wednesday's close, it was up about 227% since the start of 2023. "The team's persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan," CEO Ernie Garcia said in a statement on Thursday. "Our progress continues to positively impact the business even faster than expected."
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