On Thursday, online car retailer Carvana announced an especially rosy outlook (i.e., forecasted record profits) for the second quarter of 2023, and investors responded by driving the company’s stock price up 56% before the market closed. The company closed the day worth $4.58 billion, according to Google Finance data.
The retailer — a popular short — predicted in May that it would report a quarterly profit in Q2. At the time, the company didn’t offer a specific figure. In its latest statement to investors, Carvana said it anticipates an adjusted EBITDA north of $50 million. Wall Street analysts previously forecasted an adjusted loss of $6 million, per Reuters.
Carvana also said on Thursday that it expects to report a non-GAAP total gross profit per unit (its profits per car) above $6,000. That’d be a new record for the debt-saddled retailer.
In a prepared statement, Carvana founder and CEO Ernie …
