Carvana Soars: 2024 Earnings Guidance Raised After Massive Q3 Beat

Tempe, Arizona – Carvana, the online used-car retailer based in Arizona, has raised its earnings guidance for 2024 following a strong performance in the third quarter of this year. The company exceeded Wall Street’s expectations, with earnings per share at 64 cents compared to the anticipated 25 cents and revenue reaching $3.65 billion against the estimated $3.45 billion. As a result, Carvana’s stock surged by approximately 20% in after-hours trading on Wednesday.

Looking ahead to 2024, Carvana predicts that its adjusted earnings before interest, taxes, depreciation, and amortization will surpass its previous target range of $1 billion to $1.2 billion. This forecast demonstrates the company’s confidence in a robust finish to the year. Carvana expects a rise in retail vehicle sales for the fourth quarter compared to the previous three months, which saw the sale of 108,651 vehicles.

In the third quarter of 2023, Carvana reported a net income of $148 million, a decline from $741 million a year earlier. However, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $429 million, with a margin of 11.7%, setting new records for the company. The third-quarter results also showed adjusted EBITDA of $148 million and revenue of $2.77 billion.

Carvana’s stock has seen a significant increase of about 300% this year as the company underwent operational restructuring and cost-cutting measures. These changes were implemented in response to concerns about the company facing bankruptcy at the end of 2022. Despite closing at $207.31 per share on Wednesday, down slightly from the previous day, Carvana hit a new 52-week high of $213.98 per share.

Carvana’s optimistic outlook for the future, improved performance, and strategic adjustments have positioned the company for continued growth and success in the coming years. Through its innovative approach to online car sales, Carvana has established a strong presence in the industry and continues to attract investors and consumers alike.