Carvana Surpasses Q2 Expectations with $3.41 Billion Revenue and $0.14 EPS

Jul 31, 2024, 08:15 PM

Carvana reported strong second-quarter 2024 results, surpassing Wall Street expectations. The used-car retailer achieved a total revenue of $3.41 billion, exceeding the IBES estimate of $3.24 billion. Carvana sold 101,440 retail units in Q2, with a record adjusted EBITDA of $355 million, significantly higher than the $251.8 million estimate. The company also reported a net income of $48 million and a net income margin of 1.4%. Additionally, Carvana's GAAP operating income reached a record $259 million. The company's earnings per share (EPS) for the quarter stood at $0.14, compared to an estimated loss of $0.12 per share. Carvana's performance was driven by increased electric vehicle sales, lighter depreciation on non-EVs, and improved inventory management. The average selling price (ASP) rose by 1.3%, days-to-sale declined, inventory increased, and inventory age remained flat. Looking ahead, Carvana forecasts a sequential increase in retail units for Q3 and expects annual core profit to surpass Wall Street expectations.