Carvana Stock Gains Following Guidance Boost

Carvana (NYSE:CVNA) is a Phoenix, Arizona-based company that operates an e-commerce platform for buying and selling used cars in the United States. Its shares received a sizable boost after unveiling its third quarter (Q3) fiscal 2024 earnings on Wednesday, October 30, 2024. Carvana stock is now up over 370% in the year-to-date period.

Investors got to see Carvana’s third quarter earnings after markets closed on October 30, 2024. In Q3 2024, the company delivered net income of $148 million and a net income margin of 4.0%. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a better picture of a company’s profitability. Carvana achieved record adjusted EBITDA of $429 million in Q3 2024, while also posting a record adjusted EBITDA margin of 11.7%. That represents an all-time best for public automotive retailers.

Looking ahead, Carvana is projecting “a sequential increase in its year-over-year growth rate in retail units sold”. Moreover, it expects adjusted EBITDA will be “significantly above” the higher end of its previously projected range of $1.0 billion to $1.2 billion for the full year 2024.
Shares of Carvana have surged nearly 400% in the year-to-date period in 2024. However, the stock is still trading in solid value territory compared to its industry peers. Moreover, the company remains on track for strong earnings growth going forward.