Shares of Carvana (NYSE: CVNA) climbed over 4% in pre-market trading on Thursday after the online used car retailer reported record first-quarter results that topped Wall Street expectations.
Revenue for the quarter surged 38% year-over-year to $4.23 billion, beating the Street forecast of $3.91 billion. Retail unit sales jumped 46% to a record 133,898 vehicles, reflecting strong consumer demand and operational momentum.
Net income reached $373 million, aided by a $158 million gain from changes in the fair value of warrants. Although adjusted EBITDA also hit a record $488 million, representing an 11.5% margin, investors showed more caution, evaluating the results without the warrant-related gain.
Carvana highlighted ongoing improvements in its core operations, including margin expansion and a boost in customer satisfaction. The company reported its highest net promoter score in nearly three years.
Looking ahead to the second quarter, Carvana expects sequential growth in both retail unit sales and adjusted EBITDA. The company also outlined a long-term goal of selling 3 million vehicles annually while achieving a 13.5% adjusted EBITDA margin within five to ten years.
Earlier this month, BofA Securities analyst Michael McGovern raised his price target on Carvana to $290 from $220, maintaining a Buy rating on the stock. The consensus rating for Carvana is “Overweight” with an average price target of $269.39, suggesting a potential upside of around 4% from the current price.
As of the latest update, Carvana (NYSE: CVNA) shares are up 4.21%, trading at $270.08.
David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
