Carvana Stock Cruises On Q3 Earnings: Nearly 81k Vehicles Sold, Gross Profit Per Vehicle Jumps Despite 'Challenging Industry Environment'

Carvana Co CVNA reported third-quarter financial results Thursday after the close. Here's a rundown of the report and a look at what appears to be driving shares higher after hours.

Q3 Earnings: Carvana reported third-quarter revenue of $2.773 billion, versus the consensus estimate of $2.782 billion, according to Benzinga Pro.

The company reported net income of $741 million, assisted by a gain on debt reduction. Carvana also reported record adjusted EBITDA of $148 million. 

Carvana said it sold 80,987 vehicles in the third quarter. Gross profit per vehicle came in at $5,952, up 70% year-over-year. 

"We have always believed Carvana will be the largest and most profitable automotive retailer, and our focus on unit economics over the past several quarters led to Q3 results that clearly validate the differentiation and profitability potential of our business model," said Ernie Garcia, founder and CEO of Carvana.

"For the second consecutive quarter, we delivered GPUs that far exceed our 2021 high water marks and generated hundreds of millions of positive net income and Adjusted EBITDA despite a challenging industry environment."

Q4 Outlook: Carvana anticipates a sequential decline in retail units sold, primarily driven by industry and seasonal patterns. Adjusted GPU is expected to still be above $5,000. The company also expects positive adjusted EBITDA for the third consecutive quarter.

Management will hold a conference call to discuss these results at 5:30 p.m. ET.

See Also: Carvana Q3 Earnings Preview: Debt Restructure Drives Stock Higher, Speed Bump Ahead?

CVNA Price Action: Carvana shares were up 6.05% after hours at $31.94 at the time of publication, according to Benzinga Pro.

Photo: Tony Webster from Flickr.