Carvana Co. (CVNA) reported its fourth-quarter earnings for 2024, revealing a surprising profit amidst challenges in the used car market. The company reported a net income of $78 million, or 55 cents per share, exceeding analyst expectations of a loss of 24 cents per share. Revenue for the quarter totaled $2.9 billion, surpassing forecasts of $2.7 billion. Despite these strong results, Carvana’s stock fell by 5% in after-hours trading, attributed to concerns about future sales projections. CEO Ernie Garcia stated, ‘We are making significant progress in our strategic initiatives, which have contributed to this unexpected profitability.’ Furthermore, the company raised its guidance for the upcoming quarter, now forecasting sales between $3 billion and $3.2 billion. Additionally, Carvana’s gross profit per unit sold improved to $4,000, up from $3,500 year-over-year. This marks a significant rebound from the severe downturn the company experienced in previous quarters. The online car retailer continues to face stiff competition from established players in the used car market such as CarMax and AutoNation. Garcia emphasized, ‘Our commitment to enhancing the customer experience will remain our focus as we navigate this competitive landscape.’
Carvana Reports Q4 2024 Earnings with Surprising Profit but Stock Decline
