CVNA - Carvana stock rallies on Q4 earnings

2024-02-22 16:32:43 ET

Carvana Co (NYSE: CVNA) soared in extended hours on Thursday even though it reported worse than expected financial results for its fourth quarter.

This is a developing story. Figure missing below will be updates as received!

Why is Carvana stock up in after-hours?

The online used cars retailer saw its full-year adjusted gross profit per unit come in at $5,730 – up 115% more versus 2022.

Carvana now forecasts a slight year-on-year increase in retail units sold in its current financial quarter. Ernest Garcia III – the chief executive of Carvana Co said in a press release today:

Carvana is stronger than ever. We are beginning to demonstrate the differentiated profitability, efficiency and customer experience benefits of our vertically integrated approach.

is convinced that its adjusted EBITDA will print materially above $100 million in Q1. Note that Hedgeye reiterated Carvana stock a top short idea earlier this month (find out more).

Notable figures in Carvana Q4 earnings report

Total gross profit more than doubled to $402 million

Per-share loss also climbed from to $1.0

Adjusted EBITDA margin came in at 2.5% in Q4

Revenue declined 15% year-over-year to $2.42 billion

Consensus was 80 cents a share loss on $2.56 billion revenue

Carvana sold a total of 76,090 retail units in its recently concluded quarter – down 13% versus a year ago, as per the earnings report. Still, Carvana stock is up in after-hours because CEO Garcia also said on Thursday:

We have a clear path toward our goals of becoming the largest and most profitable automotive retailer and buying and selling millions of cars.

This is a developing story. Check back in a few minutes for more updates!

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