CVNA - 3 Worries About Carvana's Bullish Guidance
2023-05-11 10:15:00 ET
There's seemingly more to celebrate about Carvana (NYSE: CVNA) than most investors were expecting, given the stock's 24% jump last Friday following release of its latest results and outlook.
The used car dealer chain just completed its best first quarter ever , generating more gross profit per sold vehicle than it's ever produced. Carvana turned $2.6 billion worth of first-quarter revenue into a gross profit of $341 million. While it still ultimately booked a per-share loss of $1.51, that's still better than the $2 per-share loss analysts were collectively expecting, and a marked improvement on the year-earlier loss of $2.89.
Moreover, the company anticipates a positive adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter currently under way. All these signs suggest the organization is en route to greatness. But before jumping on the bandwagon, there's a handful important details you'll want to consider.
For further details see:
3 Worries About Carvana's Bullish Guidance