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Carvana (NYSE:CVNA) stock is rocketing higher on Thursday after the used-car retailer posted its earnings report for the first quarter of 2024.
Carvana starts its report strong with adjusted earnings per share of 23 cents. That’s a surprise profit compared to Wall Street’s estimate of -74 cents per share. It’s also a major improvement over its Q1 2023 EPS of -74 cents.
Revenue coming in at $3.06 billion is another win for CVNA stock. That has it surpassing analysts’ estimate of $2.69 billion for the quarter. It also represents a 17% increase year-over-year from $2.61 billion.
Carvana founder and CEO Ernie Garcia said the following about these results.
“In the first quarter, we delivered our best results in company history, validating our long-held belief that Carvana’s online retail model can drive industry-leading profitability while delivering industry-leading customer experiences. We reached new Q1 milestones for all key profitability metrics while also growing 16% year over year.”
CVNA Stock Guidance
Carvana also includes an outlook for Q2 2024 in its latest earnings report. This sees it expecting a sequential increase in year-over-year growth rate in retail units. It also expects a sequential increase in Adjusted EBITDA.
CVNA stock is up 36.3% as of Thursday morning and was up 78.2% year-to-date when markets closed yesterday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Article printed from InvestorPlace Media, https://investorplace.com/2024/05/why-is-carvana-cvna-stock-up-36-today/.
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