Carvana Projects Record Earnings in 2024
- Carvana anticipates a record year in 2024, projecting adjusted EBITDA of $1 billion to $1.2 billion.
- The used-car retailer is optimistic about its performance in the coming year.
- This expectation reflects the company's recovery and growth trajectory.
Shares of Carvana experienced a notable increase of up to 14% in after-hours trading on Wednesday, following the company's impressive second-quarter results that exceeded Wall Street expectations. Carvana reported earnings per share of 14 cents, surpassing the anticipated loss of 7 cents, and generated revenue of $3.41 billion, exceeding the forecast of $3.24 billion. The positive performance was largely attributed to a significant rise in retail vehicle sales, which reached over 101,400 units, marking a 32.5% increase compared to the same period last year. Looking ahead, Carvana has set ambitious targets for 2024, projecting record adjusted earnings of at least $1 billion. The company anticipates adjusted EBITDA between $1 billion and $1.2 billion for the full year, a substantial rise from the $339 million recorded in 2023. This optimistic outlook suggests a robust second half of the year, with expectations for a sequential increase in retail vehicle sales in the third quarter. CEO Ernie Garcia emphasized the company's potential for growth, stating in a shareholder letter that there are still significant opportunities for improvement. Carvana's previous guidance hinted at a sequential increase in adjusted EBITDA for the latter half of the year, although specific dollar amounts were not disclosed. If the company achieves its 2024 earnings target, it will mark its third consecutive year of EBITDA profitability, following a record performance in 2023.