Carvana Stock Climbs On Q4 Earnings, Company Says It's 'Stronger Than Ever'
Portfolio Pulse from Adam Eckert
Carvana Co (NYSE:CVNA) reported Q4 earnings with revenue of $2.424 billion, missing estimates of $2.528 billion, and a loss of $1 per share, below the expected loss of 88 cents. The company sold 76,090 vehicles in Q4 and 312,847 for the full year, with a gross profit per vehicle of $5,984 in 2023, up from the previous year. CEO Ernie Garcia highlighted 2023 as an exceptional year with significant business improvements and increased customer NPS. Carvana expects Q1 retail units sold to slightly increase year-over-year and anticipates Q1 adjusted EBITDA significantly above $100 million. Shares were up 16.3% after hours at $61.60.

February 22, 2024 | 9:40 pm
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Carvana reported lower-than-expected Q4 earnings but highlighted significant year-over-year improvements and a positive outlook for Q1, leading to a 16.3% increase in after-hours trading.
Carvana's Q4 earnings report showed a miss on both revenue and EPS expectations, which would typically lead to a negative market reaction. However, the company's announcement of record gross profit per vehicle, an optimistic outlook for Q1, and a significant increase in after-hours trading indicate a positive short-term impact on the stock. The market's reaction suggests investors are focusing more on the company's future potential and improvements rather than the Q4 misses.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100