Carvana Reports Record Quarterly Profits, Forecasts Earnings of Up to $3 Billion for This Year
Carvana reported record second-quarter results with net income rising by $205 million year-over-year and a 38% increase in vehicle sales. The company now forecasts total earnings between $2.7 billion and $3 billion this year, including adjusted EBITDA of up to $1.6 billion for the second half. Despite strong performance metrics such as revenue exceeding analyst expectations at $7.38 billion, shares fell 20% in after-hours trading following the announcement. Carvana's CEO highlighted continued growth and profitability over ten consecutive quarters while outlining long-term goals of selling three million cars annually with a target adjusted EBITDA margin of 13.5% by 2030 to 2035. The company is expanding into new vehicle sales through Stellantis franchised dealerships, though it did not disclose the breakdown between used and new car sales in its latest report.
Tickers: $CVNA
Topics: automotive finance stock market