Carvana beats Wall Street’s second-quarter expectations, guides toward record year

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In an aerial view, a sign is posted on the exterior of a Carvana car vending machine on July 19, 2023 in Daly City, California. 
Justin Sullivan | Getty Images

Shares of Carvana jumped as much as 12% during after-hours trading Wednesday as the company topped Wall Street’s expectations for the second quarter and disclosed expectations of at least $1 billion in adjusted earnings for 2024.

Here is how the company performed in the first quarter, compared with average estimates compiled by LSEG:

  • Earnings per share: 14 cents vs. a loss of 7 cents expected
  • Revenue: $3.41 billion vs. $3.24 billion expected

Carvana expects 2024 to be a record year for the used car retailer, including projecting adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of between $1 billion and $1.2 billion for the full year 2024, an increase from $339 million in 2023.

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 supply a dollar amount.

The company’s second-quarter net income was $48 million and net income margin was 1.4%. Adjusted EBITDA was $355 million and adjusted EBITDA margin was 10.4%, both company records.

This is breaking news. Please check back for additional updates.

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