Carvana Stock Is Surging Thursday: What's Driving The Action?

Carvana Co CVNA shares are trading higher Thursday after the company reported better-than-expected financial results for the second quarter. Here’s what you need to know.

• Q2 Revenue: $3.41 billion, versus estimates of $3.244 billion

• Q2 EPS: 14 cents, versus estimates for a loss of 12 cents

Carvana sold 101,440 vehicles in the first quarter, up 33% on a year-over-year basis. Total revenue was up 15% year-over-year. The company reported operating income of $259 million and adjusted EBITDA of $355 million.

"Carvana's second-quarter results clearly demonstrate the differentiated strength of our customer offering and business model. We not only led the industry in retail unit growth, which accelerated from Q1, but also delivered 1.4% Net Income margin and a new record 10.4% Adjusted EBITDA margin, which sets an all-time high-water mark for public automotive retailers," said Ernie Garcia, founder and CEO of Carvana

"We couldn't be prouder of our team and remain just as ambitious looking forward as we tackle the many opportunities to make our business and customer offering even better as we drive toward buying and selling millions of cars per year."

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Guidance: Carvana anticipates a sequential increase in retail units sold in the third quarter compared to the second quarter. The company expects full-year 2024 adjusted EBITDA of $1 billion to $1.2 billion, versus $339 million in full-year 2023.

Following the print, Needham analyst Chris Pierce maintained Carvana with a Buy rating and raised the price target from $160 to $200.

CVNA Price Action: Carvana shares were up 13.5% at $151.26 at the time of writing Thursday morning, according to Benzinga Pro.

Photo: Joshua Choate from Pixabay.