After online used-car retailer Carvana Co. (NYSE: CVNA) announced better-than-expected results for the second quarter of 2023, including significant savings and efficiencies, its shares reacted by immediately soaring more than 55% during the trading session.
Indeed, the company said it expected to report earnings before interest, tax, depreciation, and amortization (EBITDA) adjusted upwards of $50 million more for the period between April and June than previously anticipated, according to the CNBC report on June 8.
GPU better as well
Furthermore, Carvana stated that it also expected its gross profit per unit (GPU) to be above $6,000 in Q2, which would make it a new record for the company and an increase of more than 60% from the same period in 2022. By comparison, its GPU in Q1 2023 amounted to $4,303, up 52% from 2022.
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Notably, the previous guidance in May had expected adjusted GPU for Carvana to be at $5,000 in Q2 as part of an already positive adjusted EBITDA, according to CNBC’s earlier report.
Commenting on the expectation of the newly adjusted results, Carvana CEO Ernie Garcia said:
“The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan.”
CVNA stock price analysis
Following this announcement, the CVNA stock has gained 56.02% in a single day, adding up to the 61.97% gain over the past five days and as much as 104.47% during the past month, with its current price standing at $24.23, as per the data retrieved by Finbold on June 9.
Meanwhile, the positive news for Carvana arrive months after its shareholders filed a class action lawsuit against it, in which they accused the used-car retailer of fraudulent activities and sought to recover the allegedly lost funds, as Finbold reported on September 9, 2022.
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