Carvana's third-quarter performance exceeded expectations, leading to an increase in its 2024 earnings guidance. The company reported earnings per share of 64 cents, surpassing the anticipated 25 cents, and generated revenue of $3.65 billion, exceeding the expected $3.45 billion. As a result, Carvana's stock surged approximately 20% in after-hours trading.
In the third quarter, Carvana's net income was $148 million, lower than the previous year due to a gain on debt reduction. However, the company achieved a record adjusted EBITDA of $429 million, with an adjusted EBITDA margin of 11.7%. Carvana's stock has experienced significant growth this year, rising approximately 300% as the company restructured operations and addressed previous bankruptcy concerns.
For 2024, Carvana expects its adjusted EBITDA to be "significantly above the high end" of its previous target range of $1 billion to $1.2 billion.