Carvana (CVNA) Q3 2024 Earnings

Carvana raised its 2024 earnings guidance on Wednesday after the online used car retailer significantly topped Wall Street’s expectations for the third quarter.

Here’s how the company fared in the third quarter compared to average estimates compiled by LSEG:

• Earnings per share: 64 cents against the expected 25 cents
• Income: $3.65 billion vs. $3.45 billion expected

The company’s stock rose about 20% in after-hours trading on 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 of a strong end to the year. The company said it expects a sequential increase in retail vehicle sales during the fourth quarter compared to the previous three months, which totaled 108,651 vehicles.

For the third quarter, the company’s net income was $148 million, down from $741 million a year earlier, which was inflated by a gain on debt reduction. Adjusted EBITDA was $429 million and Adjusted EBITDA margin was 11.7%, both of which topped company records achieved in 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 have risen about 300% this year as the company restructured operations and cut costs following Wall Street concerns about bankruptcy for the company at the end of 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 at $213.98 per share.