Carvana's stock rallies more than 30% on surprise profit for used-car retailer

By Claudia Assis

Carvana posts surprise quarterly profit

Shares of used-car retailer Carvana Co. jumped 32% in the extended session Wednesday after a surprise profit and larger revenue for the used-car retailer once on the brink of bankruptcy.

Carvana (CVNA) returned to growth amid a "difficult environment that has challenged unit economics and volume for many across theindustry," Chief Executive Ernie Garcia said.

The company sold more vehicles through its retail channels, saying it saw "strong customer demand" in part due to the gains it made in conversions and customer experience in previous quarters.

Carvana earned $49 million, or 23 cents a share, in the first quarter, swinging from a loss of $286 million, or $1.51 a share, in the year-ago quarter.

The retailer said it sold 91,878 vehicles retail, or 16% more year on year. Revenue rose 17% to $3.1 billion.

Analysts polled by FactSet expected Carvana to report a loss of 64 cents a share on revenue of $2.7 billion.

The company said it expects second-quarter increases in its year-over-year growth rate in retail units, and also an increase in adjusted earnings, without providing exact figures.

Carvana's bond deal last July staved off fears of bankruptcy that had emerged in late 2022.

-Claudia Assis

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05-01-24 2025ET

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