Carvana Soars on Elevated Used-Car Sales, Bullish Outlook

David Welch
2 min read

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(Bloomberg) -- Carvana Co. reported higher-than-expected results for the most recent quarter, buoyed by resilient used-car demand and pricing, and sounded a bullish note for its full-year earnings outlook.

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The Arizona-based company made $429 million in adjusted earnings before interest, taxes, depreciation and amortization in the three months ended Sept. 30, which was well above analysts’ expectations for $326.8 million and the $148 million it earned a year ago. Its revenue came to $3.66 billion, according to a statement Wednesday, also surpassing consensus estimates for $3.46 billion.

The online used-car retailer’s stock rose 22% in postmarket trading to $253.25 as of 5:02 p.m. in New York. Its shares already had nearly quadrupled this year as of the close of regular trading Wednesday.

Carvana’s third consecutive quarter of profits is giving it momentum into the last three months of the year. The company said retail sales came to 108,651 vehicles and that it expects further volume gains for the current quarter.

As a result, it forecast 2024 earnings “significantly above the high end” of its previous projection “as long as the environment remains stable.” It had earlier predicted full-year profit in a range between $1 billion to $1.2 billion.

Carvana said retail gross profit per vehicle sold came to a record $3,497 in the third quarter. It also said selling, general and administrative costs per retail unit sold were $1,030 per vehicle lower than the same quarter a year ago.

(Updates from second paragraph with details from earnings; An earlier version of this story was corrected to show costs per retail unit as separate from gross profit per vehicle.)

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