Carvana’s Vending Machine Success in Tempe Sparks Stock Surge | Exclusive Report from CNBC PRO

Tempe, Arizona – Carvana, the online used-car retailer, exceeded Wall Street expectations in the third quarter of this year. The company reported earnings per share of 64 cents, surpassing the estimated 25 cents, and revenue of $3.65 billion, higher than the anticipated $3.45 billion. As a result, Carvana’s stock rose about 20% in after-hours trading.

Carvana is now projecting its 2024 earnings to be significantly above its previous target of $1 billion to $1.2 billion in adjusted earnings before interest, taxes, depreciation, and amortization. This is an optimistic outlook for the company, highlighting a strong end to the year ahead. In fact, Carvana anticipates a sequential increase in retail vehicle sales in the fourth quarter compared to the previous three months.

Even though the company’s net income for the third quarter was $148 million, a decrease from the $741 million reported a year earlier (largely due to a gain on debt reduction), Carvana achieved record levels with adjusted EBITDA of $429 million and an adjusted EBITDA margin of 11.7%. These results outperformed the company’s performance in the second quarter.

Throughout 2023, Carvana saw adjusted EBITDA of $148 million and revenue of $2.77 billion. Despite concerns of potential bankruptcy in late 2022, the company’s stock has experienced a remarkable growth of nearly 300% this year. Carvana’s strategic restructuring and cost-cutting measures have undoubtedly contributed to its success in the market.

Closing Wednesday at $207.31 per share, with a slight drop of less than 1%, Carvana’s stock had hit a new 52-week high earlier in the day at $213.98 per share. The company’s impressive performance in the third quarter and positive outlook for the future demonstrate its resilience and adaptability in a competitive industry.