Why Carvana Stock Is Soaring After Hours

Carvana Co CVNA shares are trading higher in Thursday's after-hours session despite announcing worse-than-expected financial results.

Carvana said revenue increased 16% year-over-year to $3.88 billion, which slightly missed the estimate of $3.98 billion, according to data from Benzinga Pro. The company reported a quarterly net loss of $(2.35) per share, which missed the estimate for a loss of $(1.80) per share.

Carvana said it sold 117,564 units in the second quarter, up 9% year-over-year.

"We also continue to deliver car buying experiences our customers love and are rapidly gaining market share as a result despite several industry and economic headwinds. We remain on the path to becoming the largest and most profitable auto retailer," said Ernie Garcia, founder, and CEO of Carvana.

Carvana said it's shifting its priorities to lowering expenses and driving positive free cash flow moving forward. 

The company said it expects sequential improvements in SG&A per retail unit sold in the third-quarter. Carvana maintained its fourth-quarter goal of $4,000 SG&A per retail unit sold. 

The used car e-commerce platform company said it continues to expect significant positive EBITDA in full-year 2023.

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CVNA Price Action: Carvana has traded between $240.58 and $19.45 over a 52-week period.

The stock was up 16.90% in after-hours at $37.50 at press time.

Photo: Tony Webster from Flickr.