Carvana logo and signature vending machines in Tempe, Arizona.
Mike Welland | CNBC
Campervan The online used car retailer on Wednesday raised its 2024 profit forecast after the company significantly beat Wall Street expectations in the third quarter.
Here’s how the company performed in the third quarter, compared with the average forecast compiled by London Stock Exchange Group:
- Earnings per share: 64 cents vs expected 25 cents
- income: US$3.65 billion, expected US$3.45 billion
The company’s shares rose about 20% in after-hours trading Wednesday.
For 2024 guidance, Carvana said its adjusted earnings before interest, tax, depreciation and amortization will be “significantly above the high end of its previous target.” US$1 billion to US$1.2 billion. The company’s adjusted EBITDA last year was $339 million.
Carvana’s new guidance signals expectations for a strong end to the year. The company said it expects fourth-quarter retail vehicle sales to increase sequentially from the previous three months, which totaled 108,651 vehicles.
In the third quarter, the company’s net profit was US$148 million. Less than $741 million A year ago, that number was inflated by debt-reduction gains. Adjusted EBITDA was $429 million, and adjusted EBITDA margin was 11.7%, both records set by the company in the second quarter.
The company’s third-quarter 2023 results included $148 million in adjusted EBITDA and $2.77 billion in revenue.
The company’s shares are up about 300% this year as it restructures its operations and cuts costs as Wall Street worries it will go bankrupt by the end of 2022.
Carvana stock closed Wednesday at $207.31 per share, down less than 1%. Earlier in the day, the stock hit a new 52-week high of $213.98 per share.
