Carvana YTD Rally Nears 425% on Raised Forecast
Carvana (CVNA:US) shares surged again after the used car retailer released improved Q2 financial projections.
The company said it expects its EBITDA of at least $50 million in Q2 and adjusted gross profit per unit above $6,000, better than the prior forecast of more than $5,000.
On the profitability front, analysts were expecting a loss of $3.6 million. Carvana said the raised guidance is a result of “stronger anticipated results from its continued plan to drive profitability.”
“Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected,” says Ernie Garcia, Carvana Founder, and CEO.
“The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan.”
Carvana shares are now up almost 423% year-to-date and more than 533% compared to the record lows set in December 2022 when the company was on the brink of bankruptcy.
Shares surged in early May after the used car retailer said it hopes to return to profitability in the second quarter. For the first quarter, Carvana reported a narrower-than-expected loss per share of $1.51, while revenue fell 25% year-over-year to $2.61 billion, still better than the expected fall to $2.56 billion.
The company’s sales of used vehicles fell 25% to less than 80,000.
Congress members Josh Gottheimer and Ro Khanna were the last to report CVNA stock transactions back in 2022.
