Carvana’s Comeback Continues: Strong Q3 Earnings and Raised 2024 Guidance
Online used-car retailer Carvana has once again exceeded Wall Street expectations, posting impressive third-quarter earnings that have sent its stock soaring. The company’s shares rose by approximately 20% in after-hours trading on Wednesday, following the release of its Q3 financial results.
A Closer Look at Carvana’s Q3 Performance
Compared to average estimates compiled by LSEG, Carvana’s Q3 performance was nothing short of remarkable. Here are some key highlights:
- Net income: $148 million (down from $741 million in Q3 2022, but still a significant improvement)
- Adjusted EBITDA: $429 million (a new company record)
- Adjusted EBITDA margin: 11.7% (also a new company record)
- Revenue: $3.69 billion (up from $2.77 billion in Q3 2022)
2024 Guidance: A Strong End to the Year
Carvana’s new guidance signals a strong end to the year, with the company expecting a sequential increase in retail vehicle sales during the fourth quarter. For 2024, Carvana has raised its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance to “significantly above the high end” of its previous target of $1 billion to $1.2 billion.
A Year of Restructuring and Cost-Cutting
Carvana’s impressive Q3 performance is a testament to the company’s efforts to restructure operations and cut costs. Following concerns of bankruptcy in late 2022, Carvana has made significant strides in turning its business around. Its stock has risen by approximately 300% this year, with shares closing at $207.31 on Wednesday.
What’s Next for Carvana?
As the company looks to the future, it’s clear that Carvana is committed to building on its momentum. With a strong Q3 performance and raised 2024 guidance, investors will be watching closely to see if the company can continue to deliver. One thing is certain: Carvana’s comeback story is one to watch.
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