Carvana Co. (NYSE: CVNA) shares surged 5.14% in pre-market trading on Thursday following the company's impressive first-quarter earnings report. The online used-car retailer not only beat analyst expectations but also demonstrated significant growth in vehicle sales and revenue, while providing an optimistic outlook for the future.
In the first quarter, Carvana reported earnings of $1.51 per share, substantially surpassing the analyst consensus estimate of $0.60. This represents a remarkable 556.52% increase from the same period last year. The company's quarterly sales reached $4.23 billion, exceeding the analyst estimate of $3.98 billion and marking a 38.26% year-over-year increase. Notably, Carvana sold 133,898 retail units in Q1, up 46% from the previous year, setting a new record for the company.
CEO Ernie Garcia expressed confidence in Carvana's future, stating that the company is well-positioned for even stronger financial performance and larger scales. The company expects sequential growth in both retail units sold and adjusted EBITDA in the second quarter and remains on track for significant growth in fiscal year 2025. Additionally, Garcia hinted that potential tariffs on new cars could benefit the used car market, potentially giving Carvana an edge in the competitive automotive retail landscape.
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