CVNA - Why Carvana Stock Skyrocketed Today
2023-07-19 16:06:00 ET
Shares of Carvana (NYSE: CVNA) were up by 40.4% as of the close of trading Wednesday, according to data provided by S&P Global Market Intelligence , after the online used car dealer announced better-than-feared second-quarter 2023 results and a favorable agreement with debtholders.
Though Carvana's quarterly revenue actually fell 23.6% year over year to $2.968 billion, that handily exceeded expectations for a much steeper 33% sales decline. On the bottom line, Carvana leveraged significant cost reductions to narrow its net loss to $105 million, or $0.55 per share -- crushing expectations for a loss of $1.15 per share. In the year-ago period, it booked a net loss of $439 million, or $2.35 per share.
"Carvana performed exceptionally well in the second quarter and set company records for adjusted EBITDA and gross profit per unit, ... all while continuing to lower expenses," said founder and CEO Ernie Garcia. "Our strong execution has made the business fundamentally better, and combined with today's agreement with noteholders that reduces our cash interest expense and total debt outstanding, gives us great confidence that we are on the right path to complete our three-step plan and return to growth."
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Why Carvana Stock Skyrocketed Today