CVNA - Why Carvana Stock Raced Ahead 25% This Morning
2023-06-08 13:28:07 ET
Carvana (NYSE: CVNA) stock took off like a rocket early Thursday morning, rising 22.7% through 9:45 a.m. ET, after the company announced a revised -- and improved -- forecast for the second quarter of 2023.
Specifically, Carvana said it expects to earn more than $6,000 in gross profit per used vehicle sold in Q2, and to report $50 million in adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ).
Carvana noted that if it hits these numbers, this will be the best gross profit margin per car it has ever reported. The announcement also firms up a promise Carvana made back in early May, when it said it would report positive adjusted EBITDA -- but didn't say precisely how positive. Carvana also promised in May that it will achieve positive free cash flow "in the future," but didn't say how far in the future.
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Why Carvana Stock Raced Ahead 25% This Morning