Carvana Co. CVNA shares are trading higher on Thursday after the company announced an improved second quarter 2023 outlook with profits expected over $50 million.
The Details:
Carvana announced the company expects to reach adjusted EBITDA of more than $50 million in the second quarter of 2023. The company expects adjusted gross profit per unit to be above $6,000, which is 63% higher than the same quarter one year ago.
Ernie Garcia, Carvana founder and CEO, stated, “Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected. The team’s persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan.”
Carvana aimed to improve profitability by focusing on operational efficiency which drove its first-quarter 2023 financial results to be one the best performing quarters for the company.
It's also important to note that Carvana has outsized short interest, which could be helping to fuel Thursday's move. 69.4% of outstanding shares are currently sold short, according to data from Benzinga Pro.
Related News: US Stocks Open Higher; Jobless Claims Surge Last Week
CVNA Price Action: According to Benzinga Pro, Carvana shares are trading more than 26% higher at $19.63 at the time of publication.
Photo: Tony Webster from Flickr
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