Carvana Co.’s stock skyrocketed 24% in the extended session Thursday after the used-car online retailer reported a narrower quarterly loss than Wall Street expected and said it was on track for growth this year despite macroeconomic conditions.
Carvana
CVNA,
lost $144 million, or $1 a share, in the fourth quarter, compared with a loss of $806 million, or $7.61 a share, in the year-ago quarter.
Revenue fell 15% to $2.4 billion from $2.8 billion a year ago.
Analysts polled by FactSet expected Carvana to report a loss of 85 cents a share on revenue of $2.56 billion.
The company guided for slightly more vehicles sold through retail this year than in 2023, and an adjusted Ebitda “significantly above $100 million.”
“Our confidence about driving significantly above $100 million of adjusted Ebitda is driven by our results so far this quarter. We are seeing strength throughout the business,” Carvana said.
“For [fiscal 2024], we expect to grow retail units sold and adjusted Ebitda compared” with last year, even as “the macroeconomic and industry environment continues to be uncertain,” the company said.
Carvana and its stock had flagged last year up until a deal with bondholders in July to restructure its debt and boost the company’s liquidity. Fears of bankruptcy emerged in late December 2022.
Shares of Carvana have zoomed 420% higher in the past 12 months, compared with gains of around 27% for the S&P 500 index
SPX
in the same period.