Carvana Reports Strong Q4, But Stock Dips After Hours
Key Highlights:
* Revenue beats estimates at $3.55 billion (up 32% YoY)
* EPS surpasses expectations at $0.56 (vs. $0.31 estimate)
* Adjusted EBITDA exceeds forecasts at $359 million
* Retail unit sales increase to 114,379
* Record 2024 revenue of $13.67 billion
* Company anticipates "significant growth" in 2025
After-Hours Performance:
Apesar strong financial results, Carvana shares declined by 10% after hours, following an earlier 52-week high.
Company Outlook:
Carvana expects sequential increases in retail units sold and adjusted EBITDA in Q1, contingent on environmental stability. The company aims to become the "most profitable public automotive retailer in US history" by adjusted EBITDA margin.
Background:
Carvana has transformed the used car market by offering online sales and automated delivery options. The pandemic fueled its growth, but rising used car values and increased inventory costs led to financial challenges.
Recent Controversy:
Short seller Hindenburg Research alleged accounting irregularities and worsening loan metrics at Carvana. However, Hindenburg closed operations in mid-January.