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Carvana issued an improved outlook for the second quarter.
David Tonelson/Dreamstime.com
Carvana
stock was surging after the used-car retailer issued an improved outlook for its fiscal second quarter.
Carvana
(ticker: CVNA) said in a press release Thursday that it now anticipates to achieve second-quarter adjusted Ebitda, or earnings before interest, taxes, depreciation and amortization, of above $50 million, better than analysts’ forecasts.
The company also said adjusted total gross profit per unit was expected to be above $6,000 in the period, a 63% jump from the same period last year.
Carvana
is expected to report its second-quarter earnings on Aug. 3.
The company reported an adjusted Ebitda loss of $24 million in its first quarter. At that time, Carvana said it expected to reach “positive adjusted Ebitda in Q2 2023,” but didn’t provide an exact figure.
“Our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected,” Chief Executive Ernie Garcia said in a statement.
Shares of Carvana surged 24% to $19.22 and were on pace for their highest close since October 2022, according to Dow Jones Market Data. The stock has soared 305% this year.
Write to Angela Palumbo at [email protected]
Source: https://www.barrons.com/articles/carvana-stock-outlook-50082e5f?siteid=yhoof2&yptr=yahoo