Carvana rallies 28% on stronger-than-expected Q2 guidance figure

Carvana Co.
CVNA,
+56.02%
stock is up 27.8% in premarket trades on Thursday after the car seller issued an estimate for second-quarter adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of about $50 million. That’s well ahead of the latest analyst estimate for adjusted Ebitda of $100,000 for the second quarter. Carvana also said its total gross profit per unit is expected to be above $6,000 in second quarter. “Our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected,” Carvana founder and CEO Ernie Garcia said in a statement.