In an aerial view, a sign is seen posted on the exterior of a Carvana car vending machine in Daly City, California, on July 19, 2023.
Justin Sullivan | Getty Images
Shares of Carvana Apple Inc. shares jumped about 14% in after-hours trading Wednesday after the company beat Wall Street expectations for the second quarter and unveiled a forecast for record adjusted profits of at least $1 billion for 2024.
Here's how the company performed in the second quarter, compared to the median estimates compiled by LSEG:
Earnings per share: 14 cents vs. expected loss of 7 cents Revenue: $3.41 billion vs. expected $3.24 billion
These results were driven by Carvana's retail vehicle sales, which exceeded 101,400 units during the quarter, an increase of 32.5% compared to the second quarter of 2023.
In conjunction with its earnings release, Carvana said in a separate filing that it will offer at the market approximately $1 billion in stock, equivalent to 35 million or so shares.
The company's gross profit per unit, or GPU, which investors closely watch, was $7,049, up $529 from a year earlier.
Carvana expects 2024 to be a record year for the used-car retailer following the results, including an adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, forecast of between $1 billion and $1.2 billion for the full 2024 fiscal year, up from $339 million in 2023.
Carvana’s guidance indicates a strong second-half performance. The company said it expects sequential increases in retail vehicle sales in the third quarter compared to the previous three months.
“Looking ahead, our business still has a lot of untapped potential. Our team remains incredible. We see opportunities to improve significantly from here over time,” Carvana CEO and co-founder Ernie Garcia said Wednesday in a joint letter to shareholders with CFO Mark Jenkins.
The company's previous guidance for this year included “a sequential increase in adjusted EBITDA” for the second half of the year, but did not specify a dollar amount.
If Carvana hits its 2024 earnings target, it would mark the company's third annual EBITDA, including a 2023 record of $339 million.
Carvana's second-quarter net income was $48 million, with a net income margin of 1.4%. Adjusted net income before interest, taxes, depreciation and amortization was $355 million, with an adjusted net income before interest, taxes, depreciation and amortization margin of 10.4%, both records for the company.
The second-quarter results continue Carvana's massive turnaround after Wall Street feared the company would go bankrupt in early 2022.