Carvana Shoots Higher After Q2 Earnings - Here's Why
Portfolio Pulse from Anusuya Lahiri
Carvana Co (NYSE:CVNA) reported a Q2 FY23 sales decline of 23.6% YoY to $2.97 billion, beating the consensus estimate of $2.59 billion. Adjusted gross profit rose 24.2% to $538 million, and adjusted EBITDA was $155 million compared to a loss of $(216) million last year. Retail units sold decreased by 35% YoY. Carvana also agreed with noteholders to reduce total debt, extend maturities, and lower near-term cash interest expense. Shares are trading higher by 23.10% at $49.00 premarket.
July 19, 2023 | 11:38 am
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Carvana reported better than expected Q2 FY23 results with increased adjusted gross profit and EBITDA. The company also plans to reduce its total debt. Shares are trading higher premarket.
Despite a YoY sales decline, Carvana's Q2 FY23 results beat estimates with increased adjusted gross profit and EBITDA. The company's agreement with noteholders to reduce total debt, extend maturities, and lower near-term cash interest expense is a positive move that could strengthen its financial position. This news has been positively received by the market, as indicated by the premarket trading of Carvana's shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100