Carvana stock rallies as gross profit per unit more than doubles in Q4

on Feb 22, 2024
  • Carvana reported its financial results for the fourth quarter today.
  • Here's what its CEO Ernest Garcia III said in a press release on Thursday.
  • Carvana stock is at a year-to-date high in after-hours trading.

Follow Invezz on Telegram, Twitter, and Google News for instant updates >

Carvana Co (NYSE: CVNA) soared in extended hours on Thursday even though it reported worse than expected financial results for its fourth quarter.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Why is Carvana stock up in after-hours?

Copy link to section

The stock is being rewarded primarily because the online used cars retailer saw its adjusted gross profit per unit come in at $5,730 – up 115% versus the same quarter last year.

Carvana now forecasts a slight year-on-year increase in retail units sold in its current financial quarter. Ernest Garcia III – the chief executive of Carvana Co said in a press release today:

Carvana is stronger than ever. We are beginning to demonstrate the differentiated profitability, efficiency and customer experience benefits of our vertically integrated approach.

$CVNA is convinced that its adjusted EBITDA will print materially above $100 million in Q1. Note that Hedgeye reiterated Carvana stock a top short idea earlier this month (find out more).

Notable figures in Carvana Q4 earnings report

Copy link to section
  • Lost $144 million versus the year-ago $806 million
  • Per-share loss also narrowed from $7.61 to $1.0
  • Adjusted EBITDA margin came in at 2.5% in Q4
  • Revenue declined 15% year-over-year to $2.42 billion
  • Consensus was 85 cents a share loss on $2.56 billion revenue

Carvana sold a total of 76,090 retail units in its recently concluded quarter – down 13% versus a year ago, as per the earnings report. Still, Carvana stock is up in after-hours because CEO Garcia also said on Thursday:

We have a clear path toward our goals of becoming the largest and most profitable automotive retailer and buying and selling millions of cars.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
USA Earnings Reports North America Retail Stock Market World