Carvana Beats Revenue and Profit Estimates, Signaling a Push for Profitability
Phoenix, AZ - Carvana (CVNA), the online car retailer, announced a rise in revenue and profit for the fourth quarter as it continues its pursuit of profitability.
Q4 Performance
* Revenue: $3.55 billion, exceeding Bloomberg's consensus estimate of $3.34 billion and 32% higher than Q4 2023.
* Earnings per share (EPS): $0.56, significantly surpassing the $0.31 estimate.
* Adjusted EBITDA: $359 million, above the expected $329.4 million.
* Retail unit sales: 114,379, outperforming the estimated 108,339 units.
Annual Results
* Record adjusted EBITDA of $1.378 billion, with a margin of 10.1%.
* Full-year sales reached 416,000 retail units, a 33% increase from 2023.
* Annual revenue soared to $13.67 billion.
Outlook
Carvana expects "significant growth" in both unit sales and adjusted EBITDA for 2025. The company anticipates sequential increases in both metrics in Q1, assuming a stable operating environment.
Market Reaction
Despite Carvana's positive earnings report, shares declined by up to 10% in after-hours trading after reaching a new 52-week high earlier that day.
Recent Controversies
Carvana has faced criticism recently, with short seller Hindenburg Research alleging accounting irregularities and subprime lending practices. However, these allegations have not derailed the company's financial performance.