Carvana Co (NYSE:CVNA) posted financial results for the third quarter after the close on Wednesday. Here’s a look at the key details from the report.
- Carvana stock is trending after earnings. Where is CVNA stock headed?
Carvana Q3 Key Metrics
Carvana reported third-quarter revenue of $8.04 billion, beating analyst estimates of $7.70 billion, according to Benzinga Pro. The company reported earnings of 39 cents per share for the quarter, missing estimates of 42 cents per share.
Total revenue increased 42% year-over-year after Carvana sold 217,385 vehicles in the quarter. Vehicle sales were up 39% on a year-over-year basis.
“In the last two years, we have doubled the number of customers we serve while continuing to lead the industry in unit economics and giving value back to our customers by offering twice the selection, faster deliveries and lower interest rates on their loans,” said Ernie Garcia, co-founder and CEO of Carvana.
Carvana anticipates an increase in retail units sold in the fourth quarter compared to the third quarter. The company also guided for full-year adjusted EBITDA to be the higher end of the company’s previously forecasted range of $2.7 billion to $3 billion. Adjusted EBITDA in the third quarter came in at approximately $800 million.
“Our current retail unit run rate puts us at a scale of 870,000 units per year. Excitingly, this is about 2% share of the used market and about 1.5% of the market overall. We have built a powerful machine and we are early in the process of realizing its potential,” the company said in a letter to shareholders.
Carvana management will further discuss the quarter on an earnings call at 5:30 p.m. ET.
CVNA Shares Surge After Earnings
Carvana shares were up 10.08% in after-hours on Wednesday, trading at $65 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
