Debt-heavy Carvana Co. said Thursday it expects to achieve an adjusted profit above $50 million in its second quarter, an announcement that sent its share price soaring.
The online used-vehicle retailer — which has in the last several months scaled back its growth endeavors, trimmed inventory and worked to reduce its cash burn to focus on improving profitability in a more volatile sales environment — also said it expects to take in adjusted total gross profit per vehicle of more than $6,000 in the second quarter.
Carvana shares surged 49 percent to $23.11 in afternoon trading on Thursday.
Carvana’s estimated adjusted earnings before interest, taxes, depreciation and amortization of more than $50 million in the second quarter would be a swing from the adjusted EBITDA loss of $239 million it reported in the same period a year earlier. The company recorded a net loss of $439 million in the second quarter of 2022 and a net loss of $2.89 billion for the full year.
