Sign and Sign Vending Machine from Carvana in Tempe, Arizona.
Michael Weiland | CNBC
Carvana On Wednesday, it raised its 2024 earnings guidance after the online used car retailer significantly beat Wall Street expectations for the third quarter.
Here's how the company performed in the third quarter, compared to average estimates compiled by LSEG:
Earnings per share: 64 cents vs. 25 cents expected Revenue: $3.65 billion vs. $3.45 billion expected
The company's stock rose nearly 20% in after-hours trading on Wednesday.
For 2024 guidance, Carvana said its adjusted earnings before interest, taxes, depreciation and amortization will be “well above the high end” of its previous target of $1 billion to $1.2 billion. The company reported adjusted EBITDA of $339 million last year.
Carvana's new guidance indicates expectations for a strong end to the year. The company said it expects a successive 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 that was inflated by debt reduction gains. Adjusted EBITDA was $429 million and Adjusted EBITDA margin was 11.7%, both of which top company records achieved during the second quarter.
The company's third-quarter 2023 results included adjusted EBITDA of $148 million on revenue of $2.77 billion.
Carvana shares have risen nearly 300% this year as the company restructures operations and cuts costs in the wake of Wall Street fears the company will go bankrupt in late 2022.
Carvana stock closed Wednesday at $207.31 per share, down less than 1%. Shares reached a new 52-week high earlier today at $213.98 per share.
