Carvana's stock rallies as company boosts outlook, cheers 'lasting business improvements'

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Carvana's stock rallies as company boosts outlook, cheers 'lasting business improvements'
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Carvana Co.'s stock was rising more than 8% in Wednesday's premarket trading after the used-car retailer revised its outlook. Carvana now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of more than $75 million, whereas it was previously calling for 'positive' performance on the non-GAAP metric.

Carvana Co.’s stock CVNA was rising more than 8% in Wednesday’s premarket trading after the used-car retailer revised its outlook. Carvana now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization of more than $75 million, whereas it was previously calling for “positive” performance on the non-GAAP metric. Analysts tracked by FactSet had been anticipating $46 million.

Carvana now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization of more than $75 million, whereas it was previously calling for “positive” performance on the non-GAAP metric. Analysts tracked by FactSet had been anticipating $46 million. The company also now models adjusted total gross profit per unit upwards of $5,500, while it previously told investors to expect more than $5,000.

 

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